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   Question    posted to Financial Advisors on 09/23/08 06:02 PM, Yonkers, NY 10705
I formed an LLC a few months ago in 07/08 and I haven't sold a product or provided a service as of yet.  Can I still expense fuel, garage, some meals, entertainment, etc. come tax time?

Thanks in advance for your response.

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Specialist Answer 1 of 3
   Answered By     Philip R. Leib, CPA, 09/23/08 06:17 PM
Philip R. Leib, CPA
117 Hillair Circle
White Plains, NY 10605
914-948-4811
leib999@optonline.net
View Business Info

 

 

Yes,

 

 

 

 

Set up an appointment for further information.

 

See http://www.PhilLeib.com

 

   

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Specialist Answer 2 of 3
   Answered By     David Lerner Associates, 09/24/08 06:30 AM
David Lerner Associates
599 West Hartsdale Avenue
White Plains, NY 10607
914-539-2013
brianmj@optonline.net
View Business Info

While I do believe that you can write off expenses against your LLC, even with no, or little income, you may want to pose this question to an accountant, CPA, or tax attorney. I am sure you can only do this a certain number of consecutive tax years, and I'm pretty sure that will raise some audit red flags with the IRS.

Feel free to give me a call if you need a referral source for the professionals listed above.

David Lerner Associates is an investment firm dedicated to preserving assets, while providing consistent returns through conservative investment vehicles. I can be reached at 914-539-2013 or BrianMJ@optonline.net,

Thank You,

Brian Jackson, Associate V.P.

David Lerner Associates

 

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Specialist Answer 3 of 3
   Answered By     Ralph Penny, 09/24/08 09:42 AM
Ralph Penny
1101 Westchester Avenue
White Plains, NY 10604
914-694-2025
r.e.penny@att.net
View Business Info

Yes, you can expense these items as a corporation.   However, the IRS "presumes" a profit motive for your business.  You must show a profit 3 of 5 years in business, or the IRS will see your business as a hobby and disallow future expenses.  I hope this helps answer your question.  Ralph Penny, CFP

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