LLC Franchise Tax

[Valokey81]

I started an LLC in January of 2019. I was unaware of the $800 dollar LLC tax that needs to be paid every year. I paid the tax plus penalties $915 this year (January, 2020). Can I deduct that tax on my 2019 year or do I have to wait for next year when I file for 2020?

[RobertG]

You have to deduct the tax in the year it was paid, 2020.

As a cash basis taxpayer, you deduct expenses in the tax year in which you actually pay them.