Can a LLC filing taxes as a partnership that filed articles of incorporation in 2017 claim startup costs on 2017 taxes even though the LLC did not have income in 2017?

[walvernon]

Do we have to make income before we can claim the costs for starting the LLC and advertising for a Kickstarter campaign that wasn't funded and payments to Fiverr for artwork?

[MinhT · Accepted solution]

If the LLC has started operating in 2017, it can claim start-up costs even if it does not yet have income.

"Business start-up and organizational costs are generally capital expenditures. However, you can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred after October 22, 2004. The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Any remaining costs must be amortized.

Start-up costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business.   Organizational costs include the costs of creating a corporation. "