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New Member
posted Jun 3, 2019 1:32:34 PM

Can I deduct owner's contributions to my single member LLC (pass through entity)?

I have spent a good portion of income from a separate W2 job to pay for expenses incurred from my single member LLC. Can I include what I have contributed as an expense to reduce the income on the overall Schedule C (it is a pass through entity). Thanks for your assistance!!

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6 Replies
Alumni
Jun 3, 2019 1:32:35 PM

No, what you put into the business is not a deduction.

You'll report the income you earned from that LLC and the expenses you incurred.  If you had to inject your own money into the businesses to keep it running, chances are your expenses have exceeded the income and youre in a loss situation already.

New Member
Jun 3, 2019 1:32:36 PM

Thank you Lisa for your quick response. You are correct in your assumption. We had a net loss - I was just wondering if I would be able to demonstrate a larger deficit as my net income (W2 job + LLC losses) doesn't truly reflect what I've netted since I've also put a lot of funds into the company.

Alumni
Jun 3, 2019 1:32:37 PM

Understood, but since you're a Single Member LLC, you're  treated like a sole proprietor, and there is no place to input any contributions you made to the business.

New Member
Jun 3, 2019 1:32:38 PM

Thanks, again.

Alumni
Jun 3, 2019 1:32:39 PM

Youre welcome.

New Member
Mar 8, 2021 10:21:50 PM

Hi  Lisa,I have an LLC - S Corp, Can be owner contributions be tax deductable on my personal taxes?