Partnership Tax Advice

[Shahdan Calcuttawalla]

123 N Shore Owned by Partner A worth $105,000

123 Coffee Bedford owned by Partner B worth $55,000

ABC LLC has $1500 in the Bank, Partner B 51% Partner A 49%. In company resolution is it passed that Partner B & Partner A both assign respective properties to ABC LLC & additionally Partner B has agreed to contribute $40,000 (The $ amount can be changed as this is an internal document)

Expenses Paid By Partner B on her personal card

N Shore Rehab	$12,092.74
N Shore Insurance	$740.25
N Shore Utilities	159.66
N Shore Earnest Money	3000
Coffee Tavern Expenses	5716.76
ABC LLC	374.88
Loan/Gift to ABC LLC	1500

Option 1

Partner B transfers entire $40,000 to ABC LLC & ABC LLC reimburses her all the above expenses she incurred on her personal credit card on the company's behalf as the company does not have a credit card yet.

Option 2

Partner B transfers entire $40,000 to ABC LLC & ABC LLC pays her personal credit card directly for the amount of expenses incurred on the company's behalf as the company does not have a credit card yet.

Option 3

Partner B just transfers the difference $40,000 - $23,584 = $16,415 . We can change the internal document that she is just brining in $16,415. In this option I am afraid ABC LLC wont be able to take care of the tax advantages on the expenses.