Can I deduct money I contribute to my LLC on my personal taxes and have the LLC pay taxes on it?

by William R. Lazor, CPA | Jun 05, 2018

I just founded an LLC for buying and renting out properties. I want to bring $40,000 from my personal checking account to the business account to purchase a rental property. At the end of the year, can I deduct $40,000 from my personal taxes and have the business pay taxes on it?

No. The contribution of capital to the LLC does not create income or expense. It is an equity (ownership) transaction between the owner and the LLC.

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Answered by: William R. Lazor, CPA, is a partner/shareholder with Kronick Kalada Berdy & Company PC in Kingston, Pa.

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