Thanks for some clarification. I'm not sure I've fully wrapped my head around this yet. As I mentioned earlier I set up the LLC primarily for the protection if affords me. I will be hiring out some of the trades for the build and some of the land work. The rest I am doing myself. Perhaps it is best to list what I have spent money on so far and
- Bought equipment to do a lot of the work myself. (Tractor, power tools, other land clearing equipment, fuel, maintenance and repair). This equipment will then 'converted' for use for our farm business
- Insurance and interest on the tractor
- I've rented some heavy machinery to do some of the land clearing
- Purchased materials for a temporary driveway
- Had a 3rd party put in a culvert
- Purchased surveys and septic design
- Purchased some landscaping (grass seed, bushes, trees, loam)
Other expenses yet to be realized (not exhaustive):
- Materials for the build
- The trades (builder, electrician, plumber etc)
- Other services like paying someone to haul off tree stumps and other debris
- Anything else I am missing
Given the expense I've already incurred can any of that be claimed as a business expense on my taxes?
