Unusual LLC tax question

[Jay Kenny]

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?

[Ashish Acharya]

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).