Hal_Al
Level 15

Get your taxes done using TurboTax

Q. What kind of expenses can be deducted from single person  LLC?

A.  You may deduct all expenses that are  ordinary and necessary. For the Meaning of Ordinary and Necessary Expenses, see: http://www.cpa-connecticut.com/ordinary-and-necessary.html

 

Q.  Can the overall LLC loss  be used to offset W2 income?

A. Yes. The net loss from Schedule C goes on form 1040, where it is subtracted from other income, including W-2 income. 

 

Q. Can a self employment  retirement contribution be used as as expense to reduce taxes?

A. No, in the case of a loss.  You may only  make a deductible contribution to a SEP, if your business shows a profit.  Reference: https://www.irs.gov/retirement-plans/retirement-plans-for-self-employed-people#:~:text=You%20can%20p...

 

Q. Can  car expense be used as as expense to reduce taxes?

A. Yes if your use of the car qualifies as a business expense.  https://www.driversnote.com/irs-mileage-guide/self-employed-deductions#headline-content-1

 

Q. Can  home mortgage & utility bills  be used as as expense to reduce taxes?

A. Yes, if you qualify for the Home office deduction. https://ttlc.intuit.com/community/tax-credits-deductions/discussion/as-an-independent-contractor-i-m...