I am employed and also am opening a restaurant that has incurred expenses for remodeling but not yet open. It is an LLC with my wife and I, must I use TT Business?

[jlgturbo]

I am reading conflicting info in the help section so want to make sure. I will remain employed and my wife will work the restaurant full time. If I use TT for Business can I also use it to submit personal taxes together? I have incurred remodeling costs to date and we are not yet open for business.

[MiriamF · Accepted solution]

If your restaurant was not open for business before the end of 2016, then you won't need to report any of the expenses just yet. You won't even need the Self-Employed version, let alone TT Business.

Once your business is open, you will be able to deduct up to $5,000 in startup expenses and $5,000 in organizational expenses, in addition to your operating costs. The remainder of your startup and organizational expenses get amortized over 15 years.

If you and your wife are partners in this business, you can avoid filing a partnership return (Form 1065) by filing as a Qualified Joint Venture. You must each file your own Schedule C claiming your own percentage of the revenues and expenses. You must also file jointly to use this approach. You can file as a Qualified Joint Venture in any year that you file jointly. If you choose to file separately, then in those years you must file Form 1065 and issue Schedules K-1 to each of the partners.

Remember that, if you hire employees, you must get an EIN for this business.

The IRS has more to say about startup expenses.