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posted Jun 4, 2019 2:50:43 PM

I sold a personal vehicle and used the proceeds to purchase 2 pieces of equipment for my LLC partnership. Can I claim on my personal taxes?

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1 Best answer
Level 3
Jun 4, 2019 2:50:46 PM

No, you can't claim it on your personal taxes.  Basically, this was a cash contribution and increased your basis in the LLC.  Similar to when you buy stock in a corporation, you can't take a deduction for purchasing the stock, you just get to deduct the amount you paid from the profit when you sell the stock. 

2 Replies
Level 9
Jun 4, 2019 2:50:45 PM

If you gave the equiipment to the Partnership, I agree with Vanessa's answer below.

If you kept personal ownership of the equipment but are just USING it for Partnership purposes, then the next question is this:  Does the Partnership Agreement REQUIRE to you pay for such expenses?

Level 3
Jun 4, 2019 2:50:46 PM

No, you can't claim it on your personal taxes.  Basically, this was a cash contribution and increased your basis in the LLC.  Similar to when you buy stock in a corporation, you can't take a deduction for purchasing the stock, you just get to deduct the amount you paid from the profit when you sell the stock.