Do I declare tax deductions for LLC startup expenses on both my personal income statement and LLC tax statement? (2024)

Thanks so much for your time!
Respectfully,
Andrew B.

‎October 23, 20197:00 PM

My question(s) are: Can I declare the $4,000 as a tax deduction on my personal tax statement?You can NEVER double dip.... expenses ONLY goes on the corp return. However the seed money you infused into the business is not income nor a deduction ... it is an increase in your basis.

Or should only declare it as a loss on the LLC tax statement?Again it is not a "loss" ... what you do report is the expenses the business incurred ... what the seed money paid for ... like if you paid for supplies, inventory, etc.

Can I declare it as a tax deduction for my personal taxes and as a loss for the LLC tax statement? Again... no double dipping allowed.

If this is your first Scorp return I highly recommend you seek local professional assistance to get educated on these basic accounting theories and how to complete a corporate return ... and if this is the 2018 return it is now VERY late and the penalties are piling up.

My question(s) are: Can I declare the $4,000 as a tax deduction on my personal tax statement?You can NEVER double dip.... expenses ONLY goes on the corp return. However the seed money you infused into the business is not income nor a deduction ... it is an increase in your basis.

Or should only declare it as a loss on the LLC tax statement?Again it is not a "loss" ... what you do report is the expenses the business incurred ... what the seed money paid for ... like if you paid for supplies, inventory, etc.

Can I declare it as a tax deduction for my personal taxes and as a loss for the LLC tax statement? Again... no double dipping allowed.

If this is your first Scorp return I highly recommend you seek local professional assistance to get educated on these basic accounting theories and how to complete a corporate return ... and if this is the 2018 return it is now VERY late and the penalties are piling up.

The return that must be filed is an 1120-S which if its using a FISCAL year that started in 9/19 and ends August 31, 2020 will be due 11/15/2020.

If you are going to choose a CALENDAR year then the first short year return is due 3/15/20 .. so please seek local professional assistance in either bookkeeping and/or tax prep to get educated ... the penalties for doing things incorrectly or late are severe.

https://www.aicpa.org/interestareas/tax/resources/compliance/downloadabledocuments/due-dates-summary...

I setup an LLC with a tax structure as an S-Corp

So for tax purposes, the bottom line is, you have an S-Corp. When you file the 2115 to have the IRS treat your LLC "like an S-Corp" for tax purposes, then the business is required to follow all the laws of your state that apply to an S-Corp, 100%. That means quarterly filings, yearly registrations, required minimum draws by all owners/members, and in most cases constant paperwork that never ends depending on what the business does.

Basically, your S-Corp will file it's own physically separate 1120-S Corporate tax return. Then a K-1 will be issued to all owner's of that S-Corp which each owner will need in order to complete their personal 1040 tax returns.

Corporate tax returns are due March 15. With an extension it's due Sept 15th. The penalty for filing late is $200 per month, per owner/member.

So you may want to get professional help in your local area and get educated on this. Paying for professional help to learn is one heck-of-a lot cheaper than paying the IRS and learning the hard way after the fact.