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Husband/wife partnership LLC and Per diem question

Discussion in 'Business Tips and Taxes' started by dutchie, Dec 15, 2017.

  1. dutchie

    dutchie Seasoned Expediter

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    Hi all,
    For any husband/wife teams that formed an LLC and have it as a partnership pass through.
    Where do you enter your per diem expense:
    as part of the K1?
    On a schedule E(1040) as a “unreimbursed partnership expense” for each of you? Do you have something in your LLC agreement that refers to this?
    Or
    On your schedule A(1040) and you use the itemized deduction option (I don’t believe this is a good option, as it won’t reduce your tax liability by as much as it could)?

    and to stop an obvious response, I am in contact with my Accountant regarding this, but would like to see all possible options for this.

    Thanks for any input
     
  2. RoadTime
    Paranoid

    RoadTime Veteran Expediter Owner/Operator

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    None of the above?

    I'm a Sole Proprietor not a LLC. But all my sources for LLC point back to the same area as Sole Proprietor.
    Schedules C
    Expenses
    Deductible meals and
    entertainment

    May want to check that out.
     
    • Worn Out Manager
      Amused

      Worn Out Manager Veteran Expediter Owner/Operator US Air Force

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      Also, check you state tax rules. When I set up in WV an LLC had an advantage. Moved to NJ and now a disadvantage as NJ has a $400 min Corp tax that I have to pay as LLC.

      Sent from my XT1710-02 using EO Forums mobile app
       
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