My (soon to be) business partner And I are starting a business and sharing expenses 50/50. We were going to go the partnership LLC route (haven’t incorporated yet) and all pass through profit/loss would be split on our taxes 50/50.
The issue is: I’m going to be purchasing (Or leasing depending on best tax savings) a new truck for this business. Biz use will be 100% as I have another vehicle for regular work and the truck would almost entirely be biz use. My partner isn’t going half on this as he already had a truck (paid off) and this is something I need (but also want a new truck for my biz use instead of a beater) and will keep regardless of what happens in the biz.
it doesn’t seem correct that 50% of the deduction for an expense that is 100% mine would also go to the partner. How would this best be handled? I’m sure this won’t be the last time one of us buys something entirely on our own for biz use.
Thanks in advance
