Tax deductions for losses within my LLC
Hello everyone, been lurking for a while now. Now I have a question, hopefully in the future I'll be able to add to this forum.
I formed an LLC last January, bought a house to fix and flip in July (could my timing have been worse?) I incurred about $20k in expenses, I had my tax guy file a 1065 form for the LLC, which shows the loss, but he is saying that because we made over $150k last year we won't be able to deduct any of the expenses from the LLC. Something about the alternative minimum tax keeps us from getting the deduction.
He did say that once we sell the house we can deduct the expenses/loss from any capital gains that we have.
Is this all right? Thanks for any replies!
Mike