This is going to be a difficult issue to address on a forum such as this, as there are way too many questions:
- I haven't seen a definitive confirmation that this is a multi-member LLC (MMLLC)?
- This does make the issue "murkier" as noted below.
- What does the operating agreement say in the way of reimbursement for member expenses?
- Exactly what "business" is handled at your "garage"?
- Was the change a necessity? No other option(s) before the change was done? Or one of convenience?
- Unless the MMLLC required the change / update, it's going to be difficult.
- The garage is most likely not titled in the name of the LLC
- You personally paid for the garage changes
- Are you getting reimbursed for utilities? RE Tax (portion attributable to garage)?
- Assuming the garage change was necessary and required, my recommendation is to have the LLC pay out a guaranteed payment; whether that's over time, in total, etc. Certainly this will be subject to tax, but that could be grossed up. I'm not sure I would be comfortable with any other method in light of minimal facts.
- You may be best served to meet with a tax professional where you can have a one-on-one discussion with all the facts. This forum is not really conducive for this type of discussion.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
