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Level 2
posted Feb 28, 2024 6:03:23 PM

Does an LLC that is open but not made any income on a released digital product have to claim minor deductions on their 1065? (Minor deductions of hundreds of dollars for tax software or filing their license) It seems it would be easier to not deduct them.

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3 Replies
Level 15
Feb 28, 2024 6:45:46 PM

Who Must File
Domestic Partnerships
Except as provided below, every domestic partnership must file Form 1065, unless it neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes.

Level 2
Feb 28, 2024 9:39:07 PM

Yes I understand that a 1065 needs to be filed in my situation. Let me clarify my question: Do small deductions have to be used?

Expert Alumni
Feb 29, 2024 8:00:32 AM

The IRS does not require that you take every deduction that you are entitled to.  However, all deductions expire at the end of the year in which they occur.

 

@l5482