Thanks for your helpful response. I did check the "Operating Agreement" and there is a paragraph, "Reimbursement", that is very high-level in its content. All it says is "The Company must reimburse the members for all direct out-of-pocket expenses incurred by them in managing the Company". However, I do not see an Accountable ("Reimbursement Arrangement" in the case of partnerships?) Plan.
I do not see a provision for allowing the partners to take the deduction directly on their Schedule E form. Looks like I will need to let the partners know that any business-related expenses paid with personal funds incurred so far cannot be deducted nor reimbursed until the agreement is updated or a reimbursement plan is established.
Thanks again for your insights.
