Standard Mileage deduction

[jrollo]

May a LLC take the standard mileage deduction. There are 2 members and they have not elected to be taxed as a corporation.

Believe they can take the standard deduction, but wanted to be sure.

Thank you,

Jeff

[jainen]

>>May a LLC take the standard mileage deduction<<

Employees and self-employed individuals can use the standard mileage allowance. The partnership itself can only deduct actual expenses, though I'm pretty sure it can use the standard rates to reimburse employees. To my mind, this question suggests some complicated shortcomings in the entity's business records, such as whether company vehicles are used some percent for non-business purposes.

[Terry D EA]

Just to add, wouldn't the partnership be required to have an accountable plan for reimbursements as well? If so, then I think the employee reimbursement method is all you have as Jainen has given you a good answer.

[jrollo]

To add to my question. One of the partners had the mileage expense and used his own car. The partnership does no have any employees Should this be reported on the Partnership return or on partner's return using a 2106.

Thank for all your replies.

Jeff

[TAXBILLY]

A partner is not an employee so a 2106 cannot be used.

taxbilly

[jrollo]

Thanks Taxbilly. Have all the information to do the return correctly.

Jeff

[Lion EA]

UPE if and only if the partnership agreement specifies the partner must use his own car and will not be reimbursed by the partnership. Suggest they start an accountable plan for 2010 and forward.