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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1644
Experience:  Certified Public Accountant
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If an LLC that is making a documentary receives a large

Customer Question

If an LLC that is making a documentary receives a large grant in late 2016 but most of the expenses will be in 2017, is there a way to defer claiming the income from the grant until 2017? The anticipation is that the expenses will end up being equal to if not more than the grant. but the concern is that if they receive the money this calendar year adn expenses are in the next calendar year, they will lose a significant chunk to taxes. Is there a way to push the income forward for tax filing?
Submitted: 7 months ago.
Category: Tax
Expert:  Mark Taylor replied 7 months ago.

Hi, my name is Mark. I will be happy to help you with your questions.

Customer: replied 7 months ago.
I don't see answers. Did you see the questions in my initional request above?
Expert:  Mark Taylor replied 7 months ago.

Yes, you would be able to defer the revenues until when the associated expenses are recognized.

Expert:  Mark Taylor replied 7 months ago.

The grant would be recorded as deferred income.

Expert:  Mark Taylor replied 7 months ago.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.

Expert:  Mark Taylor replied 7 months ago.

Please let me know if you have any questions or need clarification. I am happy to help.

Customer: replied 7 months ago.
That would only apply if they accrual method, they don't. I should have been more specific in my question. That's the sticking point. I am trying to figure out if there is a way to push the income forward.
Expert:  Mark Taylor replied 7 months ago.

Is this a new business or existing business?