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I sold a personal vehicle and used the proceeds to purchase 2 pieces of equipment for my LLC partnership. Can I claim on my personal taxes?

Forum|Forum|7 years ago
June 4, 2019
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Best answer by Vanessa11_2

No, you can't claim it on your personal taxes. Basically, this was a cash contribution and increased your basis in the LLC. Similar to when you buy stock in a corporation, you can't take a deduction for purchasing the stock, you just get to deduct the amount you paid from the profit when you sell the stock.

T

TaxGuyBill

Employee

If you gave the equiipment to the Partnership, I agree with Vanessa's answer below.

If you kept personal ownership of the equipment but are just USING it for Partnership purposes, then the next question is this: Does the Partnership Agreement REQUIRE to you pay for such expenses?

V

Vanessa11_2Answer

Employee

No, you can't claim it on your personal taxes. Basically, this was a cash contribution and increased your basis in the LLC. Similar to when you buy stock in a corporation, you can't take a deduction for purchasing the stock, you just get to deduct the amount you paid from the profit when you sell the stock.

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