My business is an LLC (Sole Proprietor). Will I be able to itemize my business expenses and take the personal exemption on my individual income tax?

Forum|Forum|7 years ago
June 1, 2019
3 replies
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My business is an LLC (Sole Proprietor). Last year I itemized my business expenses (Schedule C) and passed the net business income through to my individual income tax which I itemized (1040). This year it looks like taking the personal exemption will be in my favor.

TurboTax Home & Biz Windows

VolvoGirl

Level 15

You are confusing the Standard Deduction with your business expenses. Yes you can take both. The personal exemptions ($4,150 for each person) are going away. 3 different things.

You can always deduct your schedule C business expenses.
Then you get to take either your personal Itemized Deductions or the Standard Deduction .

This year the Standard Deduction will be doubling so many people will be switching to the Standard Deduction. And there is a max 10,000 limit of property tax and state taxes "SALT".

FAQ on 2018 changes https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return

For 2018 the standard deduction amounts are:
Single 12,000 + 1,600 for 65 and over or blind
HOH 18,000 + 1,600 for 65 and over or blind
Joint 24,000+ 1,300 for each 65 and over or blind
Married filing Separate 12,000 + 1,300 for 65 and over or blind

Anonymous

and possibly some good news. if you have a profit on the schedule C, you may qualify for the 29% qualified business income deduction. as i understand it, this has not yet been implemented in TT,

VolvoGirl

Level 15

It’s 20%. The new 20% QBI deduction is available to Sch C filers and when the program is fully updated sometime late January at the earliest ... you will see the deduction happen automatically.

The new section 199A deduction propagates from the QBI Deduction Summary to the 1040 Worksheet to Form 1040 line 9.

What is the new 20% QBI Deduction
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