Discussion:Partner's personal use of an auto advice

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Discussion Forum Index --> Tax Questions --> Partner's personal use of an auto advice

Www.cpa1.biz (talk|edits) said:

8 January 2007

I was wondering how you all would advise about a personal use auto for a partnership LLC.

If partner puts personal auto into the LLC then based on percentage of profits/losses, partner will not get full deduction of business auto expense b/c other partner takes of a piece of the deduction.

Or would you rather tell partner to keep personal auto out of the LLC partnership and take it on the 2106 to get the full deduction minus the 2% deduction threshold from unreimbusred business expenses.

Can I even tell them this or does it have to be in agreement that certain business expenses will not be reimbursed by the LLC parnership.

Please advise,


PVVCPA (talk|edits) said:

8 January 2007
Keep it outside the partnership. Unreimbursed partner expenses are deducted against the partnership pass-thru income on Sch E pg 2. Therefore the 2% haircut does not apply.

Yes, they do not need to have that written agreement regarding unreimbursed expenses.

Does anybody have a good boilerplate version of this agreement?

Www.cpa1.biz (talk|edits) said:

8 January 2007
That would be good to have a template written agreement to look at. If Tim is reading this, maybe we can get another part of this site to have templates of certain tax information such as organizers, engagement letters, written agreements, etc... etc..

But I guess we would put a hurt on the revenue of PPC....

Tdoyle (talk|edits) said:

January 8, 2007

Anyone is more than free to post their templates for organizers, engagement letters, written agreements, etc. here on TaxAlmanac, provided they don't originate from copyrighted materials. TaxAlmanac is designed to be a collaborative effort by the community, for the community. If this would help others, then by all means add them here. I'll be happy to help out in organizing them all on index pages, etc.

To add a page, just select Start a new article in the navigation box on the left. Type the title you'd like to give it in the box (Such as "John's Engagement Letter Template"), and click on the button. You'll be taken to an edit page with some example sections filled in, but you can just delete all of that and type in or paste in your information.

Try one and I will be happy to start an index page.

- Tim Doyle, TaxAlmanac Moderator - Talk to me 16:20, 8 January 2007 (CST)

Www.cpa1.biz (talk|edits) said:

8 January 2007

I tried it and I dont know where my info went. It looked kind of sloppy because I copied and pasted the text. Should have I uploaded the document? I can save it as a PDF.

Tell me what is up.



Tdoyle (talk|edits) said:

January 8, 2007

It's right here: Individual tax engagement template. You did it just right! What would you call the index page that this and other templates shoudl be on? Give me a name and I can create it for you. Need help formatting the document, just ask me and I'll help out too!

- Tim Doyle, TaxAlmanac Moderator - Talk to me 16:50, 8 January 2007 (CST)

Bengoshi (talk|edits) said:

8 January 2007
That engagement letter is pretty good. I've also seem some where at the end, it states that if client does not return the signed letter by the time s/he accepts the completed tax return, then the terms of the engagement letter shall be deemed accepted. Not sure if such clause will hold up, but it's better than nothing for those pesky clients that ignore the letter.

Death&Taxes (talk|edits) said:

9 January 2007
BJ: the auto will not go on 2106 but as a non-reimbursed partnership expense on Sch E, page 2

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