2007-03-25 13:02:31 · 4 answers · asked by MM 5 in Business & Finance ➔ Taxes ➔ United States
Ok but i need to know if I can apply it from 2006 even if my business wasnt formed until 2007
2007-03-25 14:34:03 · update #1
Sounds reasonable....probably you need to allocate them against 2007 Income. Check with your tax specialist.
2007-03-25 13:06:29 · answer #1 · answered by smiling_freds_biz_info 6 · 1⤊ 0⤋
If the business wasn't formed until 2007 you can't claim anything on your 2006 return. If you had actual start-up costs in 2006, then the business was formed in 2006, not 2007.
Both posters who stated that you can claim up to $5,000 in startup costs in the first year and must amortize the balance over 15 years are correct.
2007-03-25 23:22:02 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Start up expenses are deductible but only after the business opens.
In the year the business opens, you can deduct up to $5000 in start up costs and spread the rest (if any) over 15 years.
2007-03-25 22:37:17 · answer #3 · answered by Wayne Z 7 · 1⤊ 0⤋
Start-up costs should be capitalized and amortized over 15 years. However, you can elect to expense up to $5,000 start-up costs in the first year of business (2007), using Form 4562.
IRS Pub 535
http://www.irs.gov/publications/p535/ch08.html#d0e5387
2007-03-25 20:23:55 · answer #4 · answered by tma 6 · 1⤊ 0⤋