It was mandatory because at the time of purchase, there was not the cash flow in the business to purchase these things. So this partner, and we are all family, incurred the cost himself, for the good of the business, not expecting anything in return. He knew the need was there for these things and was willing to buy them himself.
The biggest item was a piece of machinery, that I would assume would have to be depreciated. It cost around four thousand dollars. The other things are tools, and lumber, etc, to build a new fence around our business. I had never even heard of unreimbursed partnership expenses until a few days ago through a reply to one of my questions. We still cannot reimburse him, and would not have these things had he not purchased them himself for the good of our shop. He is an active member-manager of our LLC. I just need help understanding all of this. Thank you.
