how to report LLC expenses of Single Member LLC that is an investment company

Forum|Forum|3 months ago
April 1, 2026
1 reply
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Taxpayer has a single member LLC. This LLC is an investment company that hold long term investment and received K-1.

I know all K-1 numbers go to form 1040. But, where should I report LLC's business expenses (office expenses, internet,...)?

Should I report it in Sch C? Or, should those be in Sch A as "investment expenses"?

Thanks.

Lacerte Tax

Best answer by sjrcpa

sorry for the confusion.

Taxpayer (individual) has an investment SMLLC. Its investment portfolio includes brokerage accounts (received 1099s) and other public traded partnerships who issue K-1s to taxpayer.

The SMLLC holding investments is disregarded for tax purposes. It is treated the same as the individual owner. Investment expenses are no longer deductible by individuals.