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#6
04-02-2005, 07:55 AM
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 Re: How to file this loss for my LLC? - quote - > > > > > Any equipment you need to buy for the business can be either
Logic dictates that you cannot place assets in service> > > > > depreciated or immediately written off using Section 179. > > > > If the business isn't started in the same year the equipment > > > > is purchased, 179 isn't available. > > > Actually it is if there is other earned income on the return > > > (from a day job, for example). > > I would disagree, on the basis that the assets weren't > > "placed in service" in the year they were purchased. They > > cannot be placed in service for a business that is still in > > a startup phase and not actively conducting business. > So would you say that a business that buys and uses a > computer for start up purposes (creating a business plan, > for example) cannot depreciate or Section 179 it until it is > actively conducting business? before the active conduct of business. If the active conduct of business occurs in a year subsequent to the purchase of eligible assets, Sec. 179 cannot be taken on those assets. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#5
04-01-2005, 07:47 AM
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| Re: How to file this loss for my LLC? - quote - > > > > Any equipment you need to buy for the business can be either
So would you say that a business that buys and uses a> > > > depreciated or immediately written off using Section 179. > > > If the business isn't started in the same year the equipment > > > is purchased, 179 isn't available. > > Actually it is if there is other earned income on the return > > (from a day job, for example). > I would disagree, on the basis that the assets weren't > "placed in service" in the year they were purchased. They > cannot be placed in service for a business that is still in > a startup phase and not actively conducting business. computer for start up purposes (creating a business plan, for example) cannot depreciate or Section 179 it until it is actively conducting business? -- Tom Healy, CPA Boulder, CO Web: http://www.tomhealycpa.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
03-29-2005, 11:30 PM
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| Re: How to file this loss for my LLC? "Thomas Healy" <tomhealycpa[at]earthlink.net> wrote: - quote - > "David Woods, EA, ChFC, CLU" <dwoods[at]woods-financial.com> wrote:
I would disagree, on the basis that the assets weren't> > "Thomas Healy" <tomhealycpa[at]earthlink.net> wrote: > > > "netcomm888[at]yahoo.com" <netcomm888[at]yahoo.com> wrote: > > > > I'm planning to stat a LLC. I myself will be the only > > > > employee at the beginning. But I will continue to work my > > > > current full-time job at the same time. > > > > > > > My LLC mostly will deal with Chinese customers. Hence I need > > > > to fly to China once for a while (pretty costly trip!). I > > > > really don't expect any revenue in the first year, mainly to > > > > spend some time to build my customer base by providing some > > > > free services. So obviously, the first year my LLC will > > > > incur a loss. > > > > > > > My question is Can I pass that loss into my personal income > > > > tax and get deduction on my personal income tax? > > > You aren't am employee of your LLC; you are the owner. You > > > use Schedule C. The costs you are talking about are what > > > are called "startup costs." You keep track of them; when you > > > first have customers who are ready to buy, then you can > > > begin writing off the startup costs. If the total is less > > > than $5,000, you get to write them off immediately. > > > Additional amounts can be written off over a 15-year period > > > (used to be 5 years for everything). If there's more than > > > $50,000, you can't use all of the immediate writeoff. > > > > > Any equipment you need to buy for the business can be either > > > depreciated or immediately written off using Section 179. > > If the business isn't started in the same year the equipment > > is purchased, 179 isn't available. > Actually it is if there is other earned income on the return > (from a day job, for example). "placed in service" in the year they were purchased. They cannot be placed in service for a business that is still in a startup phase and not actively conducting business. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
03-27-2005, 11:01 AM
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| Re: How to file this loss for my LLC? "David Woods, EA, ChFC, CLU" <dwoods[at]woods-financial.com> wrote: - quote - > "Thomas Healy" <tomhealycpa[at]earthlink.net> wrote:
Actually it is if there is other earned income on the return> > "netcomm888[at]yahoo.com" <netcomm888[at]yahoo.com> wrote: > > > I'm planning to stat a LLC. I myself will be the only > > > employee at the beginning. But I will continue to work my > > > current full-time job at the same time. > > > > > My LLC mostly will deal with Chinese customers. Hence I need > > > to fly to China once for a while (pretty costly trip!). I > > > really don't expect any revenue in the first year, mainly to > > > spend some time to build my customer base by providing some > > > free services. So obviously, the first year my LLC will > > > incur a loss. > > > > > My question is Can I pass that loss into my personal income > > > tax and get deduction on my personal income tax? > > You aren't am employee of your LLC; you are the owner. You > > use Schedule C. The costs you are talking about are what > > are called "startup costs." You keep track of them; when you > > first have customers who are ready to buy, then you can > > begin writing off the startup costs. If the total is less > > than $5,000, you get to write them off immediately. > > Additional amounts can be written off over a 15-year period > > (used to be 5 years for everything). If there's more than > > $50,000, you can't use all of the immediate writeoff. > > > Any equipment you need to buy for the business can be either > > depreciated or immediately written off using Section 179. > If the business isn't started in the same year the equipment > is purchased, 179 isn't available. (from a day job, for example). -- Tom Healy, CPA Boulder, CO Web: http://www.tomhealycpa.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
03-25-2005, 05:45 AM
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| Re: How to file this loss for my LLC? "Thomas Healy" <tomhealycpa[at]earthlink.net> wrote: - quote - > "netcomm888[at]yahoo.com" <netcomm888[at]yahoo.com> wrote:
If the business isn't started in the same year the equipment> > I'm planning to stat a LLC. I myself will be the only > > employee at the beginning. But I will continue to work my > > current full-time job at the same time. > > > My LLC mostly will deal with Chinese customers. Hence I need > > to fly to China once for a while (pretty costly trip!). I > > really don't expect any revenue in the first year, mainly to > > spend some time to build my customer base by providing some > > free services. So obviously, the first year my LLC will > > incur a loss. > > > My question is Can I pass that loss into my personal income > > tax and get deduction on my personal income tax? > You aren't am employee of your LLC; you are the owner. You > use Schedule C. The costs you are talking about are what > are called "startup costs." You keep track of them; when you > first have customers who are ready to buy, then you can > begin writing off the startup costs. If the total is less > than $5,000, you get to write them off immediately. > Additional amounts can be written off over a 15-year period > (used to be 5 years for everything). If there's more than > $50,000, you can't use all of the immediate writeoff. > Any equipment you need to buy for the business can be either > depreciated or immediately written off using Section 179. is purchased, 179 isn't available. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
03-24-2005, 03:49 AM
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| Re: How to file this loss for my LLC? "netcomm888[at]yahoo.com" <netcomm888[at]yahoo.com> wrote: - quote - > I'm planning to stat a LLC. I myself will be the only
No. Clearly there is no active business here. All costs> employee at the beginning. But I will continue to work my > current full-time job at the same time. > My LLC mostly will deal with Chinese customers. Hence I need > to fly to China once for a while (pretty costly trip!). I > really don't expect any revenue in the first year, mainly to > spend some time to build my customer base by providing some > free services. So obviously, the first year my LLC will > incur a loss. > My question is Can I pass that loss into my personal income > tax and get deduction on my personal income tax? are capitalized. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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03-24-2005, 02:51 AM
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| Re: How to file this loss for my LLC? "netcomm888[at]yahoo.com" <netcomm888[at]yahoo.com> wrote: - quote - > I'm planning to stat a LLC. I myself will be the only
You aren't am employee of your LLC; you are the owner. You> employee at the beginning. But I will continue to work my > current full-time job at the same time. > My LLC mostly will deal with Chinese customers. Hence I need > to fly to China once for a while (pretty costly trip!). I > really don't expect any revenue in the first year, mainly to > spend some time to build my customer base by providing some > free services. So obviously, the first year my LLC will > incur a loss. > My question is Can I pass that loss into my personal income > tax and get deduction on my personal income tax? use Schedule C. The costs you are talking about are what are called "startup costs." You keep track of them; when you first have customers who are ready to buy, then you can begin writing off the startup costs. If the total is less than $5,000, you get to write them off immediately. Additional amounts can be written off over a 15-year period (used to be 5 years for everything). If there's more than $50,000, you can't use all of the immediate writeoff. Any equipment you need to buy for the business can be either depreciated or immediately written off using Section 179. -- Tom Healy, CPA Boulder, CO Web: http://www.tomhealycpa.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
03-21-2005, 07:18 AM
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| How to file this loss for my LLC? I'm planning to stat a LLC. I myself will be the only employee at the beginning. But I will continue to work my current full-time job at the same time. My LLC mostly will deal with Chinese customers. Hence I need to fly to China once for a while (pretty costly trip!). I really don't expect any revenue in the first year, mainly to spend some time to build my customer base by providing some free services. So obviously, the first year my LLC will incur a loss. My question is Can I pass that loss into my personal income tax and get deduction on my personal income tax? Thanks in advance. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| file, llc, loss |
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