Writing off Expenses for a Project

[Shane Edwards]

Hello,

I bought a fix and flip property last year, did some demo to it and found that the property was not worth renovating(too much structural damage). I have about $80,000 in demo, Lender Interest, and other holding fees/costs for last year. I am likely going to have to sell the property for less than I purchased it for, eating losses for the sale and expenses. 

I purchases in a single owner LLC. I have been told that taxes from personal to single owner LLC kind of cross over into each other, maybe that is not the case?

I did an early withdrawl on my 401(k). I'm hoping that I can mitigate lax losses from that withdrawl (roughly $120K.)

Can I write off these expenses for last years taxes through my LLC to mitigate tax expenses from my personal 401(k)?

I hope this makes sense, I can respond with more info if needed?

Thanks in Advance!

Shane