Section 179 expense deduction for equipment and supplies from LLC S-Corp

[texpac610]

I started a small manufacturing business in 2020 and purchased equipment, supplies and materials for design and fabrication (van, computer, office furniture, 3D printer, laser cutter, etc.) My company was set up as a 'pass thru entity' LLC filing as an S-Corp. I also purchased Intuit's 2020 TTax Business and TT Deluxe hoping the two would somehow "talk to each other". I have W-2 income from my regular job reported on 1040, and was trying to bring in my start up expenses from my business as a deduction from TT Business into my 1040. 

In TTax Deluxe, I am trying to enter these expenses, but get caught in a loop where I either have to use the Form 4562 Worksheet or Form (but not both) to allow checks - the cells are blue (protected?). I cannot figure out how to enter expenses for startup costs. 

Am I in the correct form? If so/not, where do I enter my business expenses (losses)? Do I import this information from TT Business into Deluxe?

Thanks

[AnnetteB6 · Accepted solution]

Since your business is filing as an S-Corp, all of your business income and expenses will be reported on Form 1120-S using the TurboTax Business program.  A K-1 will be generated as a result of completing the Form 1120-S. 

The K-1 will be entered on your personal return to report the appropriate income and/or deductions from your S-Corp.

Since this is your first year in business, you may wish to consult a local tax professional for assistance to get started on the right foot.

[texpac610]

Thank you for a quick and succinct answer, Annette! 

I did engage both a financial advisor and CPA firm when I started my business in 2020. They have been quite helpful in helping me structure the startup. However, before then I had been a TurboTax user for many years for completing my personal income taxes.

With my new business started in 2020, I purchased both Deluxe and Premier versions for 2 reasons:

1) Although a CPA is doing my tax prep, I still want to be able to understand the process and be able to "follow the money". It allows me to ask them better questions, too. Even with CPA preparation, I am ultimately responsible for the accuracy of the taxes, since I sign off on them. (This is usually stated in the engagement letter most CPA firms send you).  

2) I would like to have the option to complete all my taxes again in a few years on my own, once my business is up and running and I have the confidence to do them right. However, I may be having too much fun by then, and still pay someone to do them. Its good to have the option.

Again, your reply has given me a path so I can 'follow along' with TurboTax. Thanks again!

[AnnetteB6]

Happy to help.  I'm glad you will be following along to understand the process.  Good luck!