Question

NEW LLC with no profit

Forum|Forum|5 years ago
February 21, 2021
1 reply
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Hi, bought Turbotax Business figuring I'd try to file my taxes myself this first year, since we didn't make a profit. We had startup costs of $34K, and after depreciation the first $5000, that now gives me a intangible asset of $29K.

After the 5000, i put in some additional expenses and unfortunately my balance sheet doesn't balance... How do i account for the $29K asset in my liabilities? Or do I need to add the $29K as income somewhere???@Luis Dinis

A

Anonymous_

Employee

On the liabilities side?

Increase your capital accounts unless the asset was financed.

L

Luis DinisAuthor

You mean on the deductions?

I have Depreciation of Assets which is the one year of amortization... Then there's a compensation and benefits section which is 0. New business expenses is where I put in the $5000 for Startup costs and $5000 for organizational costs so I have $29K which is being amortized for 15 yrs. and writing off $10000 for first year.Then it's the normal business expenses which takes the amort from the first section plus my normal expenses for $3K. so when i get to balance sheet, it says I have $29K in Assets, but -($13K) in expenses (the $10K of startup writeoffs and $3K of other expenses) I need to get to the $29K. I missing something simple but can't figure it out...