[Musing]

Hi there,

We started a 3 member LLC in Oct 2006 and this this is the first time we'll be filing taxes for it. Now since it's an LLC, I understand that we'll have to file the corporation tax with the state we incorporated in and also include it on our personal taxes. Since it's the first year, we haven't made any income and we need to claim all the business expenses.

Now to be able to file my own personal taxes:

1) Do I need the expense information from the 2 other members too? Or just having my expense information is sufficient for filing my own taxes?

2) After Oct we had our company bank account, but prior to Oct I made business payments from my personal bank account. Are they tax deductible?

Thank you once again for the help.

Best,
A :confused: J

[AtlantaTaxExpert]

The corporation or partnership that is the basis for the LLC has to file an information tax return of its own. No taxes are paid, but the return MUST be filed (deadline is 15 March 2007).

From that return, a Schedule K-1 is generated. From that, you report your share of the LLC's expenses on Page 2 of Schedule E.

2) Only to the extent that the expenses are reflected on the Schedule K-1.