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Level 4
posted Nov 26, 2023 7:50:19 AM

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.

0 3 572
1 Best answer
Level 15
Nov 26, 2023 9:54:14 AM

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. 

3 Replies
Level 15
Nov 26, 2023 8:11:20 AM

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.

Level 15
Nov 26, 2023 9:54:14 AM

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. 

Level 13
Nov 26, 2023 10:52:46 AM

I agree with @Mike9241