LLC Expenses Paid Personally (2024)

You can deduct on your individual tax return certain expenses you pay personally conducting LLC business, such as automobile and home office expenses. The LLC agreement must indicate that the members are required to cover these expenses. You should check your agreement and change it if necessary. This could allow you to depreciate your vehicle or take a mileage deduction and deduct certain expenses you incur maintaining a home office. If your LLC agreement does not indicate such items are required, submitting an expense report for eligible expenses allows the LLC to reimburse you the costs and take the deduction on the LLC return. If under the LLC agreement you are eligible to submit expenses for reimbursem*nt, you are precluded from taking a deduction on your personal return for any amounts paid out of pocket. Contact us to for assistance in analyzing your situation.