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I am a partner in a multi member LLC. Can I claim vehicle depreciation on my 1040 if I get reimbursed actual expenses from my LLC but not reimbursed for depreciation?

 
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IsabellaG
Expert Alumni

I am a partner in a multi member LLC. Can I claim vehicle depreciation on my 1040 if I get reimbursed actual expenses from my LLC but not reimbursed for depreciation?

Yes, you can deduct the unreimbursed business portion of the depreciation of your automobile, if there is a provision in the partnership agreement stipulating that you will not be reimbursed for this expense. This is reported as a reduction in the partnership income reported on Schedule E.

When you enter your K-1 for the partnership, you will reach the screen Describe the Partnership. Check that you are required to pay supplemental expenses on behalf of the LLC for which you are not reimbursed (see the screenshot). You will then be able to enter your vehicle information.

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