New Partnership Questions

[carolf]

I don't really even know how to start...

LLC paperwork filed with the state in 2014. Three limited partners and one general partner. They didn't get licensed to start business until March of 2015, but have organizational and start up expenses.

I'm going to file a $0 1065, but show a balance sheet with the start up and organizational expenses capitalized.

My question is regarding the general partner. He built a building with money contributed by the limited partners in anticipation of licensing in March. He used a lot of mileage going to lumber yard, etc. Can I file a UPE on his 2014 1040 for mileage, telephone, etc even if the partnership itself wasn't technically "live" until 2015?

[Super Mom]

Of course, see what others say, but I'm thinking this would be in the partnership start up expenses. Check, but I think up to a certain number can be expensed and then the rest capitalized, then the partners may have a loss that will be deductible if they have the basis for it (like with investments or liability for debts)

[kathyc2]

Shouldn't the mileage to lumber yards, etc be capitalized as part of the building cost?

[Super Mom]

Shouldn't the mileage to lumber yards, etc be capitalized as part of the building cost?

That makes sense, and I'm thinking the building can't be depreciated until it is put in service. The telephone would be a partnership expense on the 1065 maybe resulting in a loss for 2014.