Hello,
I started filling my Multi-Member LLC taxes using turbo tax business and got some questions.
1) The vehicles used for all company work are on the name of one of the members of the partnership, how do we include the miles deductions?
2) My parents are currently living with me, I know that if they didn't have more than 4200 of gross income I could put them as dependents, but that amount is for each one or both of them?
Thank you.
Services performed by a handyman and a plumbing company company would be considered services. Each of your parents would have to qualify as dependents independently of the other. The $4,200 income limitation is per parent. And finally, I do not understand your question regarding miles and your spreadsheet.
Thank you, and sorry, I edited my original question about the miles deduction. We bought the car we used for all the company work before establishing the company, but we never trespassed the ownership to the company itself so it is still registered under the name of one of the members. How can we declare the miles on this car for deduction?
As a general rule, partners are not allowed to deduct partnership expenses on their own individual tax returns. There is an exception if there partnership's Partnership Agreement has a provision that requires a partner to pay the expenses, or if reimbursement of business related expenses is a routine practice.
The expenses are reported on the partner's K-1. When entering the K-1 information in TurboTax, come to a screen entitled "describe your partnership". Be sure to check the box "I am required to pay supplemental business expenses...." You will be prompted to enter your expenses once this is done.