TAXMAN Posted May 15, 2013 Report Share Posted May 15, 2013 OK TP been in business 20 years as Sub S.Healthy profit each year. Decides to open in another town. Opens this as a single member LLC same business type. Before he can get open tremendous amount of work done on building to get ready to open in 2012. Opens November 2012 but has no income untill Jan 2013. Would you set up dep for 2012? Would you componet the work done in 2012? What to do with interest on loan to buy building and make repairs and improvements? Capitalize it all? I can't see where this would qualify as new business start up as tp was already in this same line of work. What are your suggestions? Thanks Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted May 15, 2013 Report Share Posted May 15, 2013 It IS a new business, since the Sub S is a separate entity from the owner(s). The new business will be reported on a Sch C. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted May 15, 2013 Report Share Posted May 15, 2013 Just curious. How many shareholders under the Sub S? If it is in the same type of business why open it as a brand new LLC, why not as a branch office of the Sub S? You could then expense a lot of costs as "ordinary and necessary". I agree with KC it (LLC) is a new business so you will have to amortize the startup costs unfortunately. Quote Link to comment Share on other sites More sharing options...
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