Ca Tax Free Investments
October 7th, 2008
Question: Started an LLC with 2 members. No income, only start up costs in 2007, how do I file?
I am confused about how I should file. The company is based in CT, I work in CA at a full time job, my partner works in NY at his full time job. I hear we can take some kind of tax credit on our LLC for the investment/loss we took the first year. Do I need to file the LLC tax return first showing the loss then take the tax credit on my individual tax return? Should I be able to take a tax credit for this since the business was an investment and we are still building it? Or can I still write off something from it? Or am I looking at this the entirely wrong way?
Here is some info about the business:
Filed in 2007, spent x amount of dollars in start up costs
-Took no revenues in 2007, only start up costs/admin costs
Any advice is appreciated. Want to file tomorrow, probably no time for appointment, thinking of using turbo tax or IRS free file.
Answer: You file a partnership return for the LLC and each owner uses his K1 form, which is part of the LLC return, to report his individual share of losses.
Tax Free Savings Account (TFSA)
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