Hi all,
Got a question regarding taxes for my and a partner's search fund. For background, our search fund is a multi-member Delaware LLC (defaulted to Partnership treatment). We incurred startup costs both with personal and business accounts throughout###-###-#### We have no income as we haven't made an acquisition yet
1) Do we need to file Form 1065, and include the K-1 schedules on our personal tax returns? Are there advantages to filing even if not required?
2) I understand we are able to deduct startup costs from personal tax returns. a) Is this on top of the standard deduction? b) How would my partner and I split up total business costs between us for personal deductions? 3) Can we write a reimbursement check from the business to ourselves to represent the expenses paid with personal funds before forming the LLC bank account? d) One of the IRS requirements for claiming deductions is that the business have "gotten off the ground" - what are the metrics for determining that for a search vehicle? Do we have to be ready to actively earn revenue before claiming the deductions?
3) Finally, if we don't file this year, can we still take advantage of those startup deductions in later years?
Thanks a lot for any and all help!!
Taxes - Filing Requirement + Startup Cost Deductions

by a searcher from University of Virginia
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We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
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