Originally Posted by
di1630
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.