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Unusual LLC tax question
If I own an LLC that sells engineering consulting services for, say, $20,000 in a year, can I use that $20,000 to make a downpayment on an investment property, and then tell the IRS the LLC had $0 profit?
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Ashish Acharya
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Ashish Acharya
#2 Tax, SDIRAs & Cost Segregation Contributor
Tax & Financial Services
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No, you cannot.
The 20,000 is either treated as a distribution (not an expense) or if you buy in an LLC, it will be listed as an asset on the balance sheet (not an expense).
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