Question

How do I account for start up small business expenses that occurred in 2020 but no income until 2021? Started as sole proprietor, changing to s-corp llc as of 4/21/21

Forum|Forum|5 years ago
April 22, 2021
1 reply
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I'd also like to include all income as the LLC. Is that possible given that income arrived in months before moving to s-corp llc?

TurboTax Online

Carl11_2

Employee

Start up expenses are claimed in the first tax year the businses is actually "Open for business". It doesn't matter in what tax year those expenses were incurred either. So you won't deal with this until next year when you complete your 2021 tax return.