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Level 2

Question

First year farming deductions

Forum|Forum|4 years ago
April 13, 2022
1 reply
0 views

I have farming deductions during FY 2021, as an Sole Proprietor {SP} due to my LLC was in process. Question is, can I still deduct farm equipment as an SP then change over to the LLC in FY 2022? Are there any limitations to this? Finally, can I take mileage deductions to my personal vehicle during both years? Thanks in advance.

TurboTax Home & Biz Windows

Level 15

An LLC can be a disregarded entity (single member) in which case it will be a seamless transition from the sole proprietorship. You may want to review Single Member Limited Liability Companies and LLC Filing as a Corporation or Partnership.

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DMJ5Author

Level 2

Thanks for the info, but my other question is, as an SP, can I deduct mileage from home to the farm, and end of day back home.

Level 13

No. This is considered commuting which is not deductible.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.