Created a single member LLC in November with no income for the remainder of the year & only expense was purchase of the food truck for the business. What do I need to do?

[ToddL99]

Please clarify - did you commence operations in 202, i.e. did you place the food truck in service in 2020?

[jmmeaviles]

He only created the LLC and purchased the food truck in 2020.  He just started the business of selling out of it last week.  So there was no income for 2020 and only expense was purchase of food trailer. @ToddL99 

[ToddL99 · Accepted solution]

Do not report the food truck on your 2020 tax return. In order to claim an expense or depreciation for business equipment, it must have been placed in service in the year you are claiming the deduction.

On your 2021 tax return, enter the food truck in the Assets being Depreciated interview of Business Income and Expenses > Your Business > Business Assets.  

[jmmeaviles]

Thank you!! @ToddL99