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arkvalleyinfo
October 19, 2018
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I'm a partner of an LLC. Can I bill the company for mileage (and therefore make it a real expense) rather than keeping my own personal log for tax time?

  • October 19, 2018
  • 2 replies
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Please let me know if this is an accepted practice.  I do have lots of recorded business trips here and there, but to make everything match up, I was planning on just adding up all the mileage reimbursement bills at the end of the year, and then writing myself a check that is a bill payment rather than a partner distribution. Thank you.

Best answer by Rustler

No

If you are using a personal car for business, you keep a mileage log per the IRS requirements, and that is a personal deduction on your taxes.  Reduced by any payments the partnership makes to you for that use, like if they allow you to use a company CC for fuel, etc - it can get really complicated

If the car is titled to the partnership, then you still keep the mileage log but the partnership determines whether to use actual expenses or the IRS standard rate at tax time.

2 replies

Rustler
RustlerAnswer
October 19, 2018

No

If you are using a personal car for business, you keep a mileage log per the IRS requirements, and that is a personal deduction on your taxes.  Reduced by any payments the partnership makes to you for that use, like if they allow you to use a company CC for fuel, etc - it can get really complicated

If the car is titled to the partnership, then you still keep the mileage log but the partnership determines whether to use actual expenses or the IRS standard rate at tax time.

    qbteachmt
    qbteachmt
    October 19, 2018

    Your LLC formation documents have to include explicit wording regarding Reimbursement of Expenses, including Mileage.

    And there would be no bill; you are not a Supplier to your own entity. If you are legally allowed to pay yourself for turning in that mileage log, just pay yourself the check; no bill, first.

    ThanksInAdvance
    ThanksInAdvance
    October 1, 2019

    Can I choose which of the following methods I want to use for my 2 partner LLC?

    Option 1: reimburse partner A on 12/31 for the mileage (as an expense) this now reduces net income as it increases expenses.

    Option 2: partner A takes the amount as deduction on personal 1040  (Is this amount added as equity for partner A?)

     

    Can I choose which option i want to use?

     

    Thanks!

     

    @qbteachmt 

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