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My wife and I own an muti-member LLC and we have filed our 1065 and K-1 forms. We both drove for the business in our own personal vehicles how do we expense the miles?

Forum|Forum|2 years ago
March 2, 2024
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The car is in our own personal names and not the business, therefore we aren't able to deduct it on the 1065 form. It was mentioned you do it when filing as individuals. However I don't see a spot to indicate mileage expense. I don't think it would be under schedule C because we got a K-1. Help please.

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Best answer by AmeliesUncle

Okay for future reference. Where would it be denoted as an expense? Given on the 1065 a personal car wasn't allowed and therefore it would be within a personal tax return.

It would be an "Unreimbursed Partnership Expense" (UPE). When entering your K-1, it should ask about that.

A

AmeliesUncle

Did the Partnership reimburse you for those expenses?

Does the Partnership Agreement specifically state it will NOT reimburse you for those expenses or state that you are responsible for those expenses?

G

godlovesus15Author

The partnership didn't reimburse us, for when filling out the 1065 and K-1 vehicle expenses do come up, but only if the company owns the vehicle. Therefore I was told to file that as an expense when filing our taxes given this multi-member LLC is a pass-thru. The agreement doesn't specify one way or another.

It's a company my wife and I own. We are the only two employees; this is our first time filing the 1065 and now we have a K-1.