Question

Deducting travel Expenses in a multi member LLC

Forum|Forum|6 years ago
February 9, 2020
2 replies
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Hi, Me and my brother currently own several properties out of state in a multi member LLC (which only owns rental properties). My question is where would I put travel expense deductions. Would I spread these out among the different properties or just lump them together as a business deduction in the "business travel expenses" section.

A

Anonymous_

Employee

Those expenses would be entered on Form 8825 as rental expenses, but read the instructions regarding travel expenses in the IRS publication (link below).

https://www.irs.gov/publications/p527#en_US_2018_publink1000218994

In TurboTax Business, enter the expenses in the Rental Real Estate section of the program.

O

OntherocksAuthor

Thank You for the answer but could I get your opinion on the following. For example I had airfare and lodging costs that came to around $1400. While there I had to visit 3 of my properties and also meet with a manager that I use on all 7 properties. Would I evenly distribute this among all properties or just list it under one? Just for clarification i'm working on the 1065 for the LLC.

ColeenD3

The best bet is to distribute the expense among the properties, allocating amounts to the property where it applies.

Carl11_2

Employee

Allocate across all properties that specific travel was for. If it was to take care of a turnaround for property A, yet while there you took care of "a few minor things" with properties B and C, the primary reason for the travel was for Property A. So it all goes to that property.

If it was to interview/hire a new property manager for all three properties, then it's allocated across all three properties.