1065 LLC MultiMember Question: Can a member "gift" money (within allowable amounts) to the LLC to cover minor bills and not list that as "cash member contributed to LLC" since it is a gift and not a contribution?

For example, let's say a member part of a LLC that has no revenue for the year has minor bills (per se less than a $1000). Can the member "gift" money to cover those minor bills without listing it as "cash member contributed to LLC" since it was a gift and not a regular contribution? Thanks for any help:)

315

Level 15

Mar 1, 2024 7:58:51 PM

sure if you don't want the deduction. However,

- If the partnership’s (LLC) agreement or practice requires a partner (LLC member) to pay certain partnership expenses from their own funds, with no right to reimbursement from the partnership, the partner is entitled to deduct these as trade or business expenses on their personal return. on schedule e for the partnership/LLC under unreimbursed partner expenses (UPE).
Substantiation and Documentation:
- To claim these deductions, partners must be able to substantiate the expenses in case of an audit by the Internal Revenue Service (IRS) and that such an agreement existed
- Proper documentation and records are essential to support the deduction.

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1065 LLC MultiMember Question: Can a member "gift" money (within allowable amounts) to the LLC to cover minor bills and not list that as "cash member contributed to LLC" since it is a gift and not a contribution?