Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

I entered equipment on an LLC 1065 which was purchased

during start up in 2017...
I entered equipment on an LLC 1065 which was purchased during start up in 2017. Will I enter any property listed in the LLC 1065 on my personal return in the partnership section? Such as the deductions for using personal vehicles for business purposes or do I leave all equipment and capital out of my personal write off for partnership section.
Show More
Show Less
Ask Your Own Tax Question
Answered in 12 minutes by:
3/10/2018
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,008
Experience: 35 years tax experience, including four years at a Big 4 firm.
Verified

Hi from Just Answer. I'm PDtax, and can assist.

Ask Your Own Tax Question

The 1065 LLC filing is for a partnership. You will report all the depreciation at the LLC level, then it is allocated amoung the partners per agreement.

You do not personally depreciate anything. Use the K-1 from the LLC to report everything personally.

Thanks for asking at Just Answer. Positive feedback, five stars being best, ***** ***** I'm PDtax.

Ask Your Own Tax Question
Customer reply replied 1 month ago
ok great. Just so I understand correctly. All assets I entered in the 1065 was for figuring my K1 income. Therefore all assets depreciated in the LLC on the 1065 stays there and will not be entered again on my personal 1040 LLC section because I am counting those assets in calculating my equity and therefore my income portion of the LLC profit / loss on the K1?Then any assets or purchases not included on the 1065 can go on my personal 1040, correct?I included all my startup costs on the 1065 as well. I would imagine I will not add that in to my 1040 either?
Customer reply replied 1 month ago
just a little more info, I purchased all the equipment myself during start up. I added all the equipment as depreciable items and counted that as capital for the LLC and ended with a capital balance on the 1065.

You could retain any assets you want outside of the LLC. Doing so creates a problem. You aren't in the business of the LLC, and would have no offsetting income. I have seen people report the depreciation you suggest personally for assets as if they were LLC assets, reported as a second K-1 loss item, but I prefer something more concrete.

If you must keep some assets out, then you should have a lease with your LLC so that you are paid for the asset usage, and thus could claim the rental income and depreciation personally. The LLC gets a rent deduction for the rent so reported, so the net is the same. But you are renting equipment in this case, which has a business purpose.

PDtax

Ask Your Own Tax Question
Customer reply replied 1 month ago
Can I rephrase this a little? Thank you in advance for reading through before responding.I bought equipment from personal funds and entered this into the LLC 1065 as assets and are depreciated. Everything was bought during startup of LLC in 2017 4/28/2017. LLC officially formed 9/9/2017. By entering these assets into the 1065 I have equity in the LLC according to the capital balance. The K-1 I then created is a schedule of profit and loss based on contribution to the LLC and it's earnings / losses which gives me a number (profit / loss) that I enter as income for my federal 1040. This is how I understand it.In turbotax 1040, I am asked about assets I contributed to the LLC and for deductions and everything I actually entered into the 1065 including startup costs. All of which I bore the costs 50-50 with the other partner (wife is only other partner and filing joint).Now the question I am asking is this: Would I add all that information into my 1040 the same as I entered into the 1065 because it is asking about it? Why would I be asked the same questions on my 1040 as the 1065 did? Is this because a single owner LLC (disregarded entity) would enter that on the 1040 instead of a 1065 w/o a k-1? If that is correct then I would ONLY add my K-1 info and some non LLC issues such as personal auto used for business deductions and items that were not reimbursed directly (or have equity basis).
Customer reply replied 1 month ago
This probably would not even be a question except that I was the preparer of the 1065 and for my 1040 at the same time being bearer of all the costs! Now I see places to put all the same information on two different forms and it seems I should be disregarding that info on my 1040 because it is on the 1065.

You should disregard the 1040 asset questions that are duplicated when you contributed them to the LLC. I agree with you.

Please rate to complete your request, five stars is still best.

PDtax

PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,008
Experience: 35 years tax experience, including four years at a Big 4 firm.
Verified
PDtax and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?
Ask PDtax Your Own Question
PDtax
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,008
5,008 Satisfied Customers
Experience: 35 years tax experience, including four years at a Big 4 firm.

PDtax is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,451 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Filed form 1040 form took the standard deduction, I am now
filed form 1040 form took the standard deduction, I am now filing the new york state, … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I need to file a tax form. Its a new LLC with no income, no
I need to file a tax form. Its a new LLC with no income, no business was generated. Is someone avaiable to help me with this now?… read more
Shan-Nel Simmons
Shan-Nel Simmons
Tax Professional/Owner
Master\u0027s Degree
43 satisfied customers
I am doing a partnership and personal return for a man and
I am doing a partnership and personal return for a man and his father. The man is telling me he and his father have agreed for partnership to go from being about 90% owned by father to 90% owned by hi… read more
PDtax
PDtax
Certified Public Accountant (CPA)
5,008 satisfied customers
If I am filing an ez1040 form can I deduct my property
If I am filing an ez1040 form can I deduct my property taxes? Or is only if I'm using the long form? And is there a fee for this service? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
When I prepared my taxes with E file they deducted amount
When I prepared my taxes with E file they deducted amount for not having insurance all year. Then I looked at the 1040 US Individual Forms and I did not see anyplace to deducted anything. Which is rig… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,923 satisfied customers
What is the rule for federal tax write offs fore real estate
what is the rule for federal tax write offs fore real estate acquired in a county tax sale … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,048 satisfied customers
Lane, Can property taxes be deducted on form 1041? Say the
Lane,Can property taxes be deducted on form 1041? Say the decedent paid 12,000 in property taxes. Decedent died on August 1st. Should 7,000 be deducted on 1040 Sch A and left over goes to 1041?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I've got a couple who want to file on their personal return
I've got a couple who want to file on their personal return next year rather than continuing filing in their LLC as a partnership. On the Federal form, 8832 Entity Classification Election, Part 1, Que… read more
abci168
abci168
Principal
27 satisfied customers
Is gambling a tax write off/ deductible in 2018. Also how
Is gambling a tax write off/ deductible in 2018. Also how much of a tax break will I see with a 40,000 per year salary. Can someone do the math crunch some numbers and let me know pretty close to what… read more
taxmanrog
taxmanrog
Master\u0027s Degree
901 satisfied customers
We have an LLC taxed as a partnership. The only asset on the
We have an LLC taxed as a partnership. The only asset on the books is an Invest we made for 20% share in another LP. I just got the K1 the partnership capital account shows the beg contribution of 500… read more
taxmanrog
taxmanrog
Master\u0027s Degree
901 satisfied customers
On the 1040A form how can i deduct state property tax (
on the 1040A form how can i deduct state property tax (Washington State)? … read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
155 satisfied customers
I have an existing LLC which filed as a partnership and then
I have an existing LLC which filed as a partnership and then as a schedule when it became a one member LLC. I now want to be treated as an s-corp in 2018. Do I need to file both 8832 and 2553 or just … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,451 satisfied customers
If I move my rental properties from my personal return to a
If I move my rental properties from my personal return to a 1065 partnership, how is the basis calculated?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,048 satisfied customers
Tax Question on section 179 deduction. 1065 Partnership
Tax Question on section 179 deduction. 1065 Partnership return has carryover section 179 deduction , the return is final and the loss is on the return. How to take 179 deduction on the final return?… read more
Fred Rook
Fred Rook
Corporate Controller
BSBA
125 satisfied customers
Are funeral expenses deductible on IRS personal return? My
Are funeral expenses deductible on IRS personal return? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am preparing a 1065 for a general partnership with two
I am preparing a 1065 for a general partnership with two partners 50/50 ownership..... It dissolved in May 2017 and one partner took all outstanding liabilities and fixed assets (tools as they were a construction company) How to I reflect that in the return? … read more
PDtax
PDtax
Certified Public Accountant (CPA)
5,008 satisfied customers
A CPA prepared a filed a personal return last april. There
A CPA prepared a filed a personal return last april. There was a NYS and NYC refund due. The check never was received. The CPA is not helping procure a replacement check, whom should the person call o… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am preparing a form 8802 for an LLC that will be filing as
Good morning. I am preparing a form 8802 for an LLC that will be filing as a Partnership on Form 1065. For 2016 this entity was a Single Member LLC and two Partners were admitted October 1, 2017. … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,923 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x