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As single member LLC with zero revenue in 2021 due to pandemic, can I still claim business related expenses on schedule c?

Forum|Forum|4 years ago
October 14, 2021
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I did receive unemployment as an independent contractor. Have purchased laptop to help restart my business.

TurboTax Self Employed Online

Best answer by Anonymous_

Your LLC is not really a pass-through; as a single-member LLC without an election to be treated as a corporation, it is a disregarded entity for federal income tax purposes (essentially a sole proprietorship reporting on Schedule C).

You can most likely use the de minimis safe harbor election to expense the laptop, assuming it is within the prescribed limits.

See https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations#Ademinimis

A

Anonymous_

Employee

You can still deduct your ordinary and necessary business expenses regardless of whether you had income provided your business continued normal operations.

R

rayehlAuthor

Thanks, just to clarify; no income for sure, question regards having zero revenue yet business expense. Trying to restart the business, had to buy laptop which would like to expense in 2021 against personal income as it is a pass through lLC.

A

Anonymous_Answer

Employee

Your LLC is not really a pass-through; as a single-member LLC without an election to be treated as a corporation, it is a disregarded entity for federal income tax purposes (essentially a sole proprietorship reporting on Schedule C).

You can most likely use the de minimis safe harbor election to expense the laptop, assuming it is within the prescribed limits.

See https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations#Ademinimis