Doing a few "test" 1065s to prepare for next year. If a partnership (LLC) has 3 vehicles and all three are owned by one partner, not the partnership, but the other partner uses the vehicle as well, is the correct way on reporting the mileage, under the standard mileage rate, as an Unreimbursed Partner Expense (UPE) on Schedule E Line 28 for each partner separately? If the vehicles were owned by the partnership, they would have to depreciate them and use actual expense, and they wouldn't be able to use the standard mileage rate correct? (There would be a UPE agreement). Thank you.
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I believe at the partner level they can use std. mileage to report as UPE on Sch E. I am assuming separate mileage logs are kept for each vehicle and each partner use so that there is no double counting.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR -
Do you know if you can't use the standard mileage rate if the partnership owns the vehicle? I thought if the partnership owns the vehicle, they have to depreciate it and use actual expenses?Originally posted by ATSMAN View PostComment
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But in your OP you stated that the Partnership does NOT own the vehicles. One partner owns all the vehicles. Did I get that right?Originally posted by mvp2885 View Post
If the Partnership owned the vehicles then you can depreciate and use actual expenses.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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The partner that owns the vehicles gets the deduction using UPE on the Schedule E of his personal return. The other partners get no deduction.
But answer this questions: Who paid for the fuel, and other vehicle expenses? The partner that owns the vehicles or the partnership or the individual partners?
Depending on the answer, you could have a mess.Jiggers, EAComment
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