Forums: Discussions for entrepreneurs and small business.

How would I go about transferring assets into an llc? I need to do this to take a tax deduction on it.. BUT what if I bought the thing about a year ago... and only now do I transfer it... would it be counted on the 2006 tax return?

It does not matter when you actually bought the asset. You would transfer it into the LLC using the FMV at the time you placed it "In Service". With (1) member LLC`s, this asset would be depreciated over it`s useful life on the Schedule C. Although if the business has made sufficient income throughout the year, you would be able to immediately expense it on your tax return (Section 179). However, in your particualar case you mentioned that the business did not have any sales in 2006. You probably should show this asset on your 2007 tax return since the depreciation will be offsetting income and your prior post mentioned that  you will not be required to file a 1040 for 2006 - due to having No income.   

I meant I am not required to file a personal 1040 cause I didnt work... but in terms of my LLC, I didnt make any money there either.

So, given this, I am not required to file?

Question for you, VirtualCPA, if you will...

I have a great deal of foreign currency which will shortly re-value.  I need to make sure that when I cash-in following the RV, it will be owned by my LLC, and not by me.  I have bank account(s) for the LLC.  The general protocol is that I will present my foreign currency to a trader, who will wire- transfer USD into my LLC's account.

Do you know of anything else I need to do to be sure this $$ is letitimately owned by the LLC, and that I won't be stung by the IRS for something I have not done correctly?  I purchased this currency with my own money, before I formed the LLC.

Do you have any recommendations for me? 

Thank you so much!  I appreciate you.

Deborah

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