KochuK
Employee Tax Expert

Deductions & credits

Hi ZachV, thanks for the question.

 

As you indicated, Single Member LLC is a disregarded entity for Federal income tax purpose, i.e. you only file Schedule C Profit or Loss From Business in your individual income tax return.

 

In Schedule C, you only need to report  Gross receipt or sales from business activities and various directly related business expenses in earning that revenue.

 

As you indicated again, the $5K planned operation funding is equity (not sales nor expenses), hence not relevant nor reportable in Schedule C.

 

When you purchase $4K camera and equipment to be used in your business, you can either capitalize it for depreciation or write it off as Section 179 expense deduction (Schedule C, line 13)

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

https://www.irs.gov/pub/irs-pdf/i1040sc.pdf

 

Hope the above helps.

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