If I am a single member LLC, run an online parts store, and I purchased competitor parts to research and develop my own. Can I deduct as expense? If so, what category?

[DS30 · Accepted solution]

Yes, You are able to take a deduction for any business expenses that are considered "ordinary' and "necessary".

You can include these as "research expenses" under "other miscellaneous expenses". (However, if you use any portion of these "research" products in the manufacture of your own products, you will want to include them as inventory until used (when they will become part of your cost of goods sold)).

Since a single member LLC is considered a disregarded entity for Federal income tax purposes, to enter business income and expenses related to your SMLLC, you have signed into your TurboTax Account (for TurboTax Online sign-in, click Here , then select "Take Me to My Return"), type "Schedule C" in the search bar then select "jump to Schedule C".

Please refer to this IRS link for more information about Business Expenses