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Tax, SDIRAs & Cost Segregation

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John Gillick
  • Investor
  • San Diego, CA
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"Individual" expenses in a 50/50 LLC

John Gillick
  • Investor
  • San Diego, CA
Posted Jan 20 2020, 00:53

Tax question. If you and a friend have a 50/50 LLC and you drive say 10 miles to check on the venture, is that $5.80 mileage expense:

a. an expense put on just your K-1?

b. an expense put on the LLC's tax form (8825) and split 50/50 on the partners' K-1s?

c.  other?

Context: I'm considering my first partnership. It's a place that is a couple of hours drive from me and a couple of hours flight or my partner. He has every right to come to inspect and work on the investment and deduct his flight, etc. but I really don't want to pay for half his flight, nor do I want the benefit of half that deduction. Can we put things like payments to contractors on the LLC's expenses and keep things like travel on our separate K-1s?

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