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After you file
This does not get reported as a reconciling item on your return. Your books need to be updated for the deduction taken on the taxes.
The "Standard Mileage Deduction" would only work for a Partnership filing 1065 if it was reported as reimbursed to the partners. If there was no cash outlay transaction on the books for this, then it runs through equity. Entering the expense on the tax return forces the entry through retained earnings and therefore Equity.
On the books, you need to record a journal entry booking the mileage expense and split the equity portion to the partners' accounts by equity split percentages.
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‎February 15, 2022
7:56 PM