Can sole proprietors deduct money spent on overseas business?

Question

I am a sole proprietor. I spent a lot of money this year to open a restaurant in China. Can I deduct the amount of money I spent from my personal income tax?

Thanks for any answers.

Answer 1

If the business has opened: Yes

If not: No

If it hasn't opened yet, the expenses are "Start-up" expenses and only deductable after the business opens.

Answer 2

Being overseas is not the issue. What the money was spend on is. Any amount spend to buy buildings and equipment is treated as an asset, not an expense. For US tax purposes, you would account for the business the same as any US business. There are certain exclusions for foreign source income and credits for taxes paid to other countries. You should consult a tax professional with experience in this area for more detailed advice.

Answer 3

sure, we would desire to continually be spending extra money on our very own human beings! Our human beings want wellness care, training possibilities, some thing which will carry them out of poverty! we would desire to quit looking after the international until we've helped out very own! Billions bypass to Africa and it on no account gets to the suitable human beings. And BO needs to deliver a million.a million trillion as quickly as we've the biggest deficit interior the history of our united states? we've hundreds of thousands with out wellness care, no jobs, previous failing infrastructure, human beings residing in squalor. i think of Hillary is sweet...we would desire to take back our united states! As to Iraq, the middle East has been combating for hundreds of years...we would desire to make the United international locations do what it relatively is meant to do! we want the international leaders to step and help those international places that are in consistent turmoil. it won't in basic terms be the U. S.. the assumption of the UN is a good subject...yet has no longer been controlled good. The UN needs a chief that isn't scouse borrow....they want a chief which will unite the international places right into a difficulty-loose objective of assisting the international.

Answer 4

technically you put the expenses on your schedule "C" all of your business expenses count. Even on mars.

Answer 5

Absolutely - be sure to use the correct IRS form.

Answer 6

definitely!