Tax treatment of LLC with no income but expenses

[Joe Lijoi]

Hi all!

My current full rehab duplex project is owned by an LLC which owns nothing else or has not generated income yet. My question is can I use the expenses incurred on the project as deductions even though there has not been income or is the fact that it is a real estate project treated differently? This is my first property in an LLC so I am not clear on the rules and have been told differing things depending on who I speak to. Thanks in advance!

[Jeff Nash]

@Joe Lijoi @Chris Davidson raised very good questions as more information is needed. Is this a buy and hold (you are investor and the asset is a long-term depreciable fixed asset) or fix and flip (you are a dealer and the asset is inventory)? Is is a multi-member or single member LLC? What are the nature of the expenses and how much are they? Feel free to elaborate here and/or message me, or consult with your current tax professional.