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Lipton
Level 1

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?

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.

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Best answer October 19, 2018

Best Answers
Rustler
Level 15

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?

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.

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3 Comments
Rustler
Level 15

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?

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.

View solution in original post

qbteachmt
Level 15

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?

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
Level 2

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?

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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