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Schedule C in first year of new LLC

I was employed in coporate job through Nov 2021 and had all W2 income.  I started an LLC in Oct but did not record ANY income just some start up expenses.  Is is worth filing out a schedule C for 2021 returns if there was NO income for the new single entity LLC business?

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3 Replies

Schedule C in first year of new LLC

If you attempted to make money, then yes record the expenses. It will help you this year in offsetting the w-2 income. I am guessing you will have been in a higher tax bracket in 21 being that you had a full time job and this year you are just beginning the business.

Schedule C in first year of new LLC

Turbo Tax is telling me that I do not qualify for home office deduction as I did not have any income against the business.   I can take the start up costs and asset depreciation.   Is this right?

AnnetteB6
Employee Tax Expert

Schedule C in first year of new LLC

Yes, you can deduct your startup expenses and begin depreciation of the assets placed in service for your business regardless of whether you had income for those first couple of months.

 

Also, with regard to the qualified home office, the deduction is limited by the income of the business.  But, if you are using actual home office expenses instead of the simplified method, then the expenses will be carried forward to a year where they can be deducted.

 

@dswright1

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