Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Apr 30, 2020 9:01:42 AM

Can I retroactively run 2019 expenses through an 2020-formed LLC?

I have many professional expenses but forgot to form my LLC last year. Can I form an LLC today and run 2019 business expenses through them?

0 2 931
2 Replies
Expert Alumni
Apr 30, 2020 10:31:25 AM

If the business was in operation in 2019, you should report it on your 2019 return as self employment.

 

If the business was not in operation in 2019 you can claim the expenses in 2020 as start up expenses.

 

Per IRS Pub 535 Business Start-Up and Organizational Costs: "Business start-up and organizational costs are generally capital expenditures. However, you can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred after October 22, 2004. The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Any remaining costs must be amortized."

 

As long as your start-up expenses are less than $5000, you can add them as Business Expenses. 

Returning Member
May 4, 2020 11:03:56 AM

The business was formed last year and I incurred T&E and other related expenses.