Inventory deduction

Forum|Forum|5 years ago
March 9, 2021
9 replies
57 views

Hello, my client has two LLCs, she created one LLC for the purpose of buying inventories and the other LLC she uses as the business to sell her products. For this situation, how can she deduct the inventory expenses on her tax return? and for the other LLC that has no income generated, what should she do about it? Thank you

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TaxGuyBill

Are these Single Member LLCs that have not made an election to be taxed as a corporation?

If that is the case, they are "disregarded" for income tax purposes. That would mean that for income tax purposes, SHE bought inventory and SHE sold the products. It would all be one business.