topic CA LLC Fee deduction in Deductions & credits

CA LLC Fee deduction

Anonymous — Tue, 11 May 2021 01:29:16 GMT

I have an LLC and I represent one client.

Every year the CA LLC fee amounts to $6,000, based on revenue.

My client reimburses me for this fee when I pay it.

However, and this is where I feel stupid, there's a section in TT where you can deduct this fee, other fees and taxes, and I just automatically entered the fee in that section.

I definitely feel I should not have been deducting it since I get it reimbursed. I assume I'm correct?

Doh!

Re: CA LLC Fee deduction

M-MTax — Tue, 11 May 2021 01:35:19 GMT

You shouldn't be deducting the fee IF you're getting reimbursed AND you're not reporting the reimbursement as income.

Re: CA LLC Fee deduction

Anonymous — Tue, 11 May 2021 02:18:03 GMT

So either I should not deduct or if I deduct I should report as income so that the IRS gets its money somehow?

Re: CA LLC Fee deduction

M-MTax — Tue, 11 May 2021 03:24:29 GMT

Right.....either don't deduct because it's a wash or report as income and then deduct the expense....which is also a wash.