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My husband and I owned and operated a chrome shop on site…

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My husband and I...

My husband and I owned and operated a chrome shop on site for 3 years. We closed that shop and operated the last 2 years as a service company to have jobs finished 3rd party. We closed the shop with debt to the Port (property owner), We have had an LLC in place until Nov 30th, and have not really done business past this, but would like to use December write off's for my office work portion at home. The question is, can any of the past debt's become personal liabilities if we show as operating without the LLC coverage? Should I be safe and say we closed November and lose December tax write offs?

Accountant's Assistant: Can you tell me what state the LLC is registered in?

Washington

Accountant's Assistant: Has anything been officially filed? If so, what?

For closing? No I have not sent out any info yet. just getting ready to and though I should check.

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

The port (property owner) did about $100K in clean-up when we left the site adding to our debt. They have not filed against us for past rent owed or this but I want to make sure there is not a loophole that they can come after us personally because I show we operated 1 month without having the LLC in place

Submitted: 3 months ago.Category: Tax
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Answered in 7 minutes by:
1/7/2018
Tax Professional: Lev, Tax Advisor replied 3 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,708
Experience: Taxes, Immigration, Labor Relations
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AFTER the business closed - no deductions for business related expenses are allowed.
If you operated as an LLC - you may dissolve the LLC - but continue the business operation as a physical person - that is possible.

But there must be some indication that you continue to offer services of have a product for sale.

The best such indication would be if you have actual sales.

When you personally assume and pay business related debt - that will be a tax deduction for you personally.

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Customer reply replied 3 months ago
date is for accounting write off purposes. I do office duties and we still have dumpable things removed from the original site we have been disposing of. No customer activity received or debts paid in the 4th quarter.
As the LLC the port can only file against the company for debts. If I show as still in business in December without the LLC coverage, does this leave things open for the past debtor to file against us personally?
Tax Professional: Lev, Tax Advisor replied 3 months ago

That fact - of having business activities - will NOT have any relation to the creditors and will NOT affect your personal obligations.

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Tax Professional: Lev, Tax Advisor replied 3 months ago

Moreover - you are NOT required to inform the creditor and not required to provide any information from your tax return.

Your - and to be precised not your personal but LLC's - relations with the creditor are strictly based on the contract and if you had any personal guarantee on that contract.

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