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If your LLC buys "TurboTax" for the indivual partners for them to do their tax returns, is that considered a business expense?

We are a small family business, taxed as a partnership, and usually buy  "TurboTax" for everyone.

Can this be considered a business expense?

Thank you.

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If your LLC buys "TurboTax" for the indivual partners for them to do their tax returns, is that considered a business expense?

not deductible since this would be a personal expense of the partners. if the partnership does pay, those payments could either be treated as a non-deductible expense or distribution. 

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3 Replies

If your LLC buys "TurboTax" for the indivual partners for them to do their tax returns, is that considered a business expense?

I'm not certain what you will accomplish by doing so as it would appear to be either compensation for services or a return of a capital (i.e., a distribution of property).

 

I will page @Rick19744.

If your LLC buys "TurboTax" for the indivual partners for them to do their tax returns, is that considered a business expense?

not deductible since this would be a personal expense of the partners. if the partnership does pay, those payments could either be treated as a non-deductible expense or distribution. 

If your LLC buys "TurboTax" for the indivual partners for them to do their tax returns, is that considered a business expense?

I agree with @Mike9241 

*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.

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