@Wedney wrote:
Thank you for your response.
The different expenses are for networking events, dining at establishments in order to build relationships with owners and managers for business purposes.
It is a profit sharing partnership with a 50/50 split between myself and the founder.
A valet parking company.
This year I’ll have a company card for these expenses but last year I did not and just used my own personal credit card. Thank you again for your help!
I still don't know what kind of firm this is.
Let's assume it is partnership, not registered as an LLC and not an S-corp. In that case, the partnership must file a form 1065 partnership tax return, that issues a K-1 statement to each partner. The K-1 passes each partner's share of income and expenses on to the partner, the K-1 is listed on the partner's personal tax return and the partner pays income tax plus self-employment tax.
To the best of my knowledge you can't be a general partner and also a W-2 employee. The employee status needs to be terminated as of the date you join the partnership. The partnership likely needs to apply for a new federal tax number (EIN) if the owner is changing from a sole proprietorship to a partnership. There may be other paperwork needed. I suggest you and your partner get to a CPA very quickly, before any mistakes pile up. (For example, if your partner is changing from a sole proprietorship to a partnership, the filing deadline for a 1065 partnership return is March 15, not April 15, and unless an extension is requested, the late penalty is $195 per month per partner.)
Meanwhile, the business (both as a sole prop before and as a partnership now) can reimburse you tax-free for expenses you prove with receipts, if the business sets up an accountable plan. Without an accountable plan, your expenses from when you were a W-2 employee could be reimbursed, but the reimbursement must be added to your W-2 taxable income. You can't deduct your expenses with or without reimbursement. After you became a partner, expenses you paid personally can be reported on the form 1065 as partnership expenses, which are deducted as a business expense from your gross income, or you can be reimbursed with an accountable plan.
But I think you need professional help, at least to get started.
