LLC Expenses vs. Standard Deduction

[Dave Craig]

I know this is a very basic question, but I've read quite bit about real estate investing and taxes at this point and haven't seen it clearly stated. Since the LLC is a passthrough entity, do the business expenses (plus your personal itemized deductions) have to exceed the standard deduction for a personal tax return to even matter or is the fact that this would be included in the calculation for Net Profit allow you to get the benefit of "pre-tax expenses" separately from the portion of your taxes related to your personal 9-5 income?
Similarly, if your business operates at a loss, does that loss plus other itemized deductions also have to exceed the standard deduction before it becomes a factor?

[Sean O'Keefe]

@Dave Craig "Do the business expenses (plus your personal itemized deductions) have to exceed the standard deduction for a personal tax return to even matter" 

No, that's not how it works.

The income/expenses from your LLC are reported on IRS Schedule K-1 that flows through to your personal tax return. This isn't included in values to determine if you are taking the standard deduction or not.

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