Hi @ThomasM125,
Thank you so much for your response! It means a lot that you took the time to help me out.
1. If I deduct the unreimbursed partner expenses when I enter the partnership Schedule K-1, do I still have to record these expenses somewhere on the 1065, or do I only mention them when filling out my personal return?
2. It's not a very large amount, so if I don't want to deduct them, are you saying that I can add these expenses to the cash contributed section and just leave it at that? Would I have to make note of these expenses anywhere else between the 1065 and my personal return using this method?
- Sorry for all the questions on this. Someone told me that I can record these personal credit card expenses as cash contributions and deductible expenses without reimbursing myself because the LLC was formed in 2024, so it is expected to have some crossover during the formation process. Is that true?
- Update: I just got off the phone with two more professionals. Both have different advice.
- One said to report the personal credit card expenses as deductible expenses on the 1065, but don't include anything in the cash contributed bucket.
- The other person advised not to report personal credit card expenses as cash contributions or as deductible expenses on the 1065. They recommended reporting them only on my personal return.
3. Totally different question, but you seem like the right person to ask. At the end of the year, we had a $55.15 balance on our business credit card that was paid in Jan 2025 using the business bank account. Since these charges were created in Dec 2024 but weren't paid until Jan 2025, how should this be recorded on the 1065? Is it considered a liability? If so, what kind?
