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New Member
posted Jun 6, 2019 5:35:33 AM

Standardized or Itemized Deduction when filing with a small business LLC?

I've always depended on the itemized deduction as related to the small business so never thought I could take the standard deduction on the personal side of the return. Can I have both Standard deduction for the personal side and itemized for the small business part of the return?

0 8 1472
8 Replies
Level 15
Jun 6, 2019 5:35:35 AM

Yes.  They are totally separate things.  Are you filing schedule C for your LLC?  Are you a sole proprietor?  If you are a S corp you need to file a separate 1120S business return.  Or a 1065 Partnership return.  How is your LLC set up?

Level 15
Jun 6, 2019 5:35:37 AM

Personal Standard Deduction or Itemized Deductions on schedule A have nothing to do with self employment on schedule C.

New Member
Jun 6, 2019 5:35:38 AM

Yes this is a LLC Photography business and profit/loss shown on a schedule C.  Does this mean I take the Standard deduction on Schedule A and then itemized the business profit/loss itemized on the Schedule C?  Seems like TurboTax would recognize this and separate the two in the Q/A process.

Level 15
Jun 6, 2019 5:35:40 AM

Exactly,  except you do not get a schedule A if you take the Standard Deduction.  Schedule A is if you enter your personal itemized deductions, like Mortgage, Medical, State income tax, Charity, etc.

Schedule A is under Personal - Deductions and Credits
Schedule C is under Business

New Member
Jun 6, 2019 5:35:40 AM

I've spent all morning trying to figure out the 2016 Tax return and I found the Schedule C with a net profit of 175.  and the Form 1040 is showing a 1040 Line 40 amt greater than 12,600 which is what the std deduct should be for my wife and i filling joint return.  TurboTax is easy to use but figuring out how it computes this is mind boggling.  I found page after page of worksheets for Schedule A with Mortgage, Charity, etc. but no Schedule A.

Level 15
Jun 6, 2019 5:35:42 AM

How old are both of you?  If you are 65 or older you get an extra Standard Deduction.  What is on line 40?

The Standard Deduction for Joint is 12,00 + 1,250 for each spouse 65+.  So line 40 could be
12,600 or 13,850 or 15,100

New Member
Jun 6, 2019 5:35:44 AM

13,850 so that's it so i am taking itemized deductions and the LLC Schedule C had a net gain of 175. Thank you!! for helping me figure this out!! So really these days my mortgage interest and charitable contributions really doesn't  even count i guess.

Level 15
Jun 6, 2019 5:35:45 AM

No you are taking the Standard Deduction (not Schedule A for Itemized Deductions)

Your business expenses on schedule C are a separate thing.  Nothing to do with standard or itemizing deductions.