Hi all.
My wife and I use Quickbooks Online to manage our business expenses. Last year after I got laid off, we started our LLC(2 members but live in a community state). Our EIN is considered a Sole Prop. We formed our company in 2023 so this will be our first year in business.
Going through turbo tax on our personal taxes I am trying to figure out how to add expenses that the business incurred last year as we were developing/patenting our product.
From the looks of it, TurboTax says "If you and your spouse own a business together, you’ll need to split your business income and expenses between the two of you according to ownership percentages."
- Does this mean that since we are considered 50/50 owners that I have split expenses/income(none) 50/50 on two separate entries?
- IRS views us as Sole Prop - can we just enter it all on the one person who is listed on the EIN issuance letter?
Expenses question:
- When entering our business expenses, it looks like TurboTax wants me to enter each and every transaction incurred for that particular expense(Description, Date, Amount) - is there a way to enter a total amount for the particular category?
- We use Quickbooks Online to manage our business expenses, it seems absolutely insane and a giant waste of time for us to have to pull each and every single transaction in every category out of QBO and manually enter them in TT.
Income Question:
- Business had no income in 2023 as we were developing/researching/testing our product as well as going through the patent application process. Our plans of launching in November had to be pushed back to early Q1 of this year so I am a bit worried about how this may look from a tax perspective.
Thanks
