Wife & I are 2 member LLC in NY. Each pays own medical and use personal cars for business. Can we write bus. miles & med. after issue the k-1 on pers. taxes.

[Ashby · Accepted solution]

You are missing out on the Self Employed Health Insurance deduction. To get this deduction from a partnership, the insurance can be held in your personal name, but must be reimbursed by the partnership and reported in Box 4 of your K-1 as guaranteed payments. 

Otherwise, you have to report your premiums paid as medical expense deductions on Schedule A and treat them as itemized deductions.

Business mileage can be taken on Schedule E as unreimbursed partnership expenses (UPE).

You should do a brief amendment amending the language of any existing partnership or operating agreement to provide that each partner or member is required to pay for automobile expenses without reimbursement. This allows you to deduct the mileage on Schedule E.