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Level 1

How to handle Partner Asset Gifts in and LLC and Quickbooks

I am a partner in a two member LLC art business. My partner decided to give a piece of the businesses' art valued at $3500 to an individual who allowed her to use an empty office to show art for several months. We did not agree upon this transaction and now the partner needs to pay the business back for the donated art. I'm not exactly sure how this should be handled in Quickbooks? As a partner contribution to the LLC? Are taxes owed on the $3500 donated work? I'm at a loss. Please advise.

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Best answer 10-16-2018

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Level 3

How to handle Partner Asset Gifts in and LLC and Quickbooks

We can't give accounting advice here, but my personal advice would be that the partner would have to pay out of pocket since they solely initiated the 'deal', so that would seem to fall outside of the business operations tax-wise.  However it depends on your LLC agreement and other things so you would need to talk to your accountant and perhaps your lawyer.

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Highlighted
Level 3

How to handle Partner Asset Gifts in and LLC and Quickbooks

We can't give accounting advice here, but my personal advice would be that the partner would have to pay out of pocket since they solely initiated the 'deal', so that would seem to fall outside of the business operations tax-wise.  However it depends on your LLC agreement and other things so you would need to talk to your accountant and perhaps your lawyer.

View solution in original post

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