sdtaxlady
Level 2

I got a new client in 2020, an LLC with multiple investors.  This company who hired me buys the land and builds the building and then contributes it to the new LLC which was formed in 2020.  It's a 6 million dollar project.  It came to my attention after the fact that there was income in 2019 from a campground on the land purchased and it netted a profit.  Only around $30K but still income.  The 1st LLC who built the building, it's a convenience store, has given us a list of assets and it does include start-up costs.  A bank account was opened and the income was deposited into the 2nd LLC's bank account and expenses were paid out before the LLC actually started.  I was not involved at that time.  My question is, can I subtract that income from the start-up expenses paid by the first LLC?  I am in a conundrum.  Nothing fits.  Is there any solution other than withdrawing from this engagement?

0 Cheers