There will be a lot of trail and error and money going into researching and creating the product or service. Will I be able to claim any of the financial investments as a business expense even though I don’t have a finished product? For example, traveling expenses, product prototypes, etc. Thanks everybody!
2007-02-26 01:17:31 · 5 answers · asked by onelchris 2 in Business & Finance ➔ Small Business
If that were true then everyone could do that, claim the business never got off the ground, and deduct it.
Deductions offset income...you can't spend $10 on startup, have no income, and have the gov't owing you money back.
2007-02-26 01:47:44 · answer #1 · answered by stonerosedesigndotcom 3 · 0⤊ 0⤋
The answer is YES.Expenses was incured ,money was spent on travelling expenses etc,since there was money already voted for such which is called WORKING CAPITAL.this is what is used to run the business before the business is gotten.
2007-02-26 09:46:37 · answer #2 · answered by light 1 · 0⤊ 0⤋
It would be considered a research and development expense but I would advise to have back up information and all things in order when doing this... It is a kind of tricky area...
2007-02-26 09:20:49 · answer #3 · answered by De 5 · 0⤊ 0⤋
You should be able to deduct all your expenses once the business is up and running.
Expenses are deducted from your gross profits.
2007-02-26 11:42:37 · answer #4 · answered by thomy8s 4 · 0⤊ 0⤋
i think it is not possible
2007-02-26 09:20:36 · answer #5 · answered by sudi p 2 · 0⤊ 0⤋