All Forum Posts by: Michael Coe

I guess my first question would be since my AGI is over 100K I must file "form 8582 passive activity loss"?  When filling out the worksheets for form 8582 would I input my K-1 loss from the 1065 (-$189) and the UPE for mileage here or does the UPE for mileage not go anywhere on form 8582 and is only located in part 2 for schedule E?

Thanks,

Mike

Thank you Michael.  I was doing some digging into that last evening and I found a Tax Blog that stated exactly what you said with a caveat due to the new tax reform.  The partnership agreement must say or be amended to say something to the effect that:

"Careful planning is required to take advantage of this exception, including drafting (or amending) the applicable partnership or operating agreement with some specificity to provided that the partner or member is required to non-reimbursed automobile, telecom, client entertainment, professional association or other items. And, of course, adequate records must be kept substantiating the expenses consistent with the documentation requirements of the tax code."

I think I will be posting a second question soon about form 8582 passive activity loss but I need to work through it first.

Thank you all for your responses thus far,

Mike

Hello, I procrastinated and now I beg the community for help. 

My wife and I formed a partnership LLC this year and bought our first property. I have filed the 1065 and did not include mileage expenses in the 1065 since the business did not reimburse my wife and I for all the travel we did to work on the unit. My assumptions were that on our 1040 somehow I would show that our home is the primary place of business and every trip we made to the unit counted for mileage expense. Then somewhere I would input the total mileage driven and multiply by 0.545 and bam here is a big deduction on our personal return. I just can't figure out how to actually do this. I'm also unsure if deducting mileage on personal return for business travel expenses was eliminated by the tax reform?

Can someone offer some guidance?  Hopefully the answer is not to amend the 1065.

Thanks for your time,

Mike