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Old 01-26-2019, 03:27 PM
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Fourpaw
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Joined APC: Mar 2012
Position: Airplane
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Originally Posted by di1630 View Post
Longshot but wondering if anyone knows LLC stuff. Here is my scenario:


Military pilot, started a LLC in July 2018 for a small farm operation. Spent/paid ~30k in 2018 to get the crop planted which will produce income in 2019 when it is sold. All that $30k is deductible.


Tax laws say that since I am a single member LLC I must follow the Dec 31, 2018 tax calendar. Tax laws also say I cannot deduct expenses because there has not been "economic performance" in 2018.


So, can I use accrual accounting and just deduct that $30k in 2019 when the crop sale occurs?


Longshot but thanks for any words.

Your are allowed to deduct start up costs up to $50000 for your Llc. Year spent vs year earned doesn’t matter. I would show 30k in expenses for 2018 and then whatever profit for 2019 minus your 2019 expenses.
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