LLC Deductions

[melpaw57]

I started an LLC in 2023 for my therapist business. I am the only owner. I had no business income in  2023,  but I had a significant amount of start up expenses.  I was told that I could deduct these on my personal tax return, which I understand, but I was also told (by a supposedly knowledgeable entity) that I could actually deduct and get a refund for more than the amount of tax that I owe on my personal return. This dosen't sound right to me, but just wanted to be 100% sure.

Thanking you in advance.

[Anonymous_]

See https://www.irs.gov/newsroom/heres-how-businesses-can-deduct-startup-costs-from-their-federal-taxes

If you were not actually open for business in the 2023 tax year, then you would not file a return for the business (Schedule C or otherwise). 

Also, your question has a TurboTax Business tag. If the LLC is a single-member LLC (just you), then the LLC does not need to file any kind of separate income tax return (i.e., you report on Schedule C).

[melpaw57]

Thank you TagTeam.

So since I was not open for business in 2023, does that mean that I cannot deduct any of my startup costs incurred in 2023 (licensing and consulting fees, required courses, etc.)? If not, can I deduct these 2023 costs in my 2024 taxes?

[Anonymous_]

Yes, 2024.

See https://www.irs.gov/publications/p535#en_US_2022_publink1000208939

and

https://www.thetaxadviser.com/issues/2017/sep/deducting-startup-expansion-costs.html