Do you need an LLC to report business expenses when filing taxes?

[Allan Rosso]

Do you need an LLC to report business expenses when filing taxes?

This is a question I have had for a while, have researched and talked to a few people about it, but I can't seem to get a straight answer on. I even contacted Turbo Tax, but the tax expert was reluctant to "give tax advice".

Along with this, I have a couple other questions:

1. What exactly would be considered a claimable business expense? I own a rental that I had to do some interior work on; patch holes in the drywall, painted the inside, new roof, re-did the outside of the chimney, new carpet in three rooms, and bought a fridge and stove for it, among other smaller things.

2. Has anyone used MileIQ?

I appreciate any, and all advice! Thank you!

[Taylor Brugna]

Allan Rosso If you are referring to expenses related to your rental property as business expenses you definitely do not need an LLC to claim deductions. Tax deductions must be ordinary and necessary in the course of business. Repairing drywall would absolutely be a legitimate deduction, and it would be taken on your schedule E as a repair if under $2500. If you have business expenses related to a bunch of properties, you still don't need an LLC. You can just allocate the expenses to each property accordingly.

A single member LLC is disregarded entity for income tax purposes, meaning that if you had one or not you'd still file and claim deductions in the same place.