Clarification on Reporting Unreimbursed LLC Expenses in TurboTax Business

[csully]

Background Information:

• My wife and I established a multi-member LLC in May 2024 (Tennessee), each holding a 50% ownership interest.

• Before and after forming the LLC, we incurred various legitimate startup and operational expenses using a personal credit card.

• We did not reimburse ourselves from the LLC for these personal credit card expenses.

Questions:

1. Since we incurred expenses on our personal credit card both before and after forming the LLC and did not reimburse ourselves, can these charges still be recorded as deductible expenses on the LLC's tax return (Form 1065)?

2. If these expenses on the personal card aren't deductible, where exactly should they be recorded in TurboTax Business?

3. There is a section in TurboTax business where it asks you to enter the "Cash Member Contributed to LLC." Does the term "cash contributed" specifically refer only to funds directly deposited into the LLC’s bank account, or would our unreimbursed personal credit card expenses also qualify as "cash contributions" for tax purposes? If they aren't cash contributions, are they considered additional capital contributions instead?

[Rick19744]

A few comments:

• As noted in your option #3, you personally paying for the business expenses should be recorded as a capital contribution.
• Next the expenses should be categorized as either operational (if the business is actually in business; actually started business) or start-up expenses; with the later being capitalized and amortized or possibly expensed as allowed.
• In the first year, it is important to be able to identify when you "begin" the business, as this will impact the handling of the start-up expenses; when you are either able to deduct in full or begin amortization.

[csully]

Thank you.

Could you please clarify specifically where and how I should enter these personal payments (capital contributions) in TurboTax business? I see a section for cash contributions and I see startup and operational expenses, but I don't see anywhere that specifically says capital contributions.

Am I supposed to add everything as an expense and then later add the capital contributions to the nondeductible expense section?