Thanks for your reply, pk. Sorry for my late reply, I was travelling. A and B are correct but C is not--I don't want to liquidate the entity, I just started it last year. Net Operating Losses (NOLs) is what you're referring to? I just want to know if I can file my 8858 as a dormant entity because it had no activity in 2021--no income and no expenses--thus making it much easier for me to fill out the complicated form.
Dormant entity writes at top margin of form: “Filed Pursuant to Announcement 2004-4 for Dormant FDE.”
And I want to know that, if I do this, can I still take a deduction on 2021 return for the fee I paid to a foreign lawyer to get me a business license? About $1,200. I consider that a startup expense as I paid for it, the business did not pay for it. And I paid it before the business was licensed. Would I take this deduction on Schedule C? Or I cant do it because the business had no activity in 2021? Or does the legal fee have to be amortized over 10 years? Because if it has to be amortized, I just wont take the deduction, it will make tax preparation too complicated for my simple business.
At this point, I have to file in a few days, and I don't even know if I have to file a Schedule C for my dormant, inactive foreign disregarded entity.
Many thanks if you can reply again.
