My business partner and I have a very small partnership LLC. This is my first year filing IRS tax forms for the LLC.

In late 2014 I made a $30 purchase (from my personal money) on behalf of the LLC. The LLC reimbursed me for the expense in early 2015.

I'd like to report the $30 expense as an "accounts payable" item for the LLC on the 2014 tax forms, and then as paid on the tax 2015 forms. I have not been able to figure out how to report this on Form 1065 and its related schedules.

It feels like this is a simple question, but I haven't been able to find an answer.

  • Is your LLC accrual-based? Probably not, so what "accounts payable" are you talking about? – littleadv Jul 30 '15 at 20:00

You report it when the expense was incurred/accrued. Which is, in your case, 2014. There's no such thing as "accounts payable" on tax forms, it is an account on balance sheet, but most likely it is irrelevant for you since your LLC is probably cash-based.

The reimbursement is a red-herring, what matters is when you paid the money.

  • So, to borrow a phrase, what happens in 2014 stays in 2014? – user2592842 Jul 30 '15 at 21:25
  • I guess everything must flow from the LLC to my personal 1040 tax form every year. I was hoping to avoid the $30 "personal expense" from the LLC in 2014 and the subsequent $30 "personal income" from the LLC in 2015. (My apologies--I'm sure that isn't the correct terminology.) Based on what you've said I guess that's not possible. Thanks for the help! – user2592842 Jul 30 '15 at 21:30
  • @user2592842 not sure what you're talking about. The only thing that appears on tax form is the $30 expense incurred by the LLC. – littleadv Jul 31 '15 at 3:15

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