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cakepeach
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Can I deduct my single member LLC's expenses from my full-time job income?

I have a full-time job and a single-member LLC as a side hustle.  Since a single-member LLC is a “disregarded entity" and my company’s profits and my income are one and the same, will I be able to deduct my LLC's business expenses from the income earned through my full-time job?

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Can I deduct my single member LLC's expenses from my full-time job income?

Yes, a loss on Schedule C will subtract from your other income.  Do you have a profit or loss?  Enter all your expenses on schedule C.  

 

But Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year. And you have to answer yes to both questions about exclusive and regular use, not just one. The area of your home office must be used regularly and exclusively for business to deduct it.

Can I deduct my single member LLC's expenses from my full-time job income?

No.  The business expenses are deducted from your business income on Schedule C to arrive at your net income or net loss.  The result is entered on your Schedule 1 Line 3.  The amount from Schedule 1 Part I Line 10 flows to your Form 1040 Line 8.

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