Can you still write off your business start off expenses, when using a sellers permit from first location.?

Question

Already own one restaurant, gonna open second one. I decided to use my existing sellers permit and not apply for new one. Did I do myself a disservice as far as taxes go???

Answer 1

When you haven't opened for business, startup costs in excess of $5,000 must be amortized over 15 years and cannot be deducted.

Since you are already in the restaurant business, your expenses would not be startup expenses and would not have to be amortized. This is an advantage to you, since you can deduct all your pre-opening advertising, recruiting costs, etc.

So, keep track of them, and deduct them all. Your business now has two locations instead of one, but one business.

Answer 2

WHOA -- Sellers permit is not a business license, it is a permit to purchase goods and products at wholesale, that you will use in your business to create the end product, in your case the preparation & Service of meals for profit. You pay "sales" taxes on your gross amount of sales probably 7+ % to the State government. When you add all your expenses for business & you subtract those costs and that produces your gross INCOME, and you pay the Federal Government their share! thats taxes!
Now as far opening another Rest/locations to basically do the same thing - your business license usually covers that contigency, but you could Phone up your local licensing agency and check that! AND IT WOULDN"T have any effect on your taxes! Sales or Income.

Answer 3

Your sellers permit has nothing to do with your income taxes. It's a strictly local issue between you and city hall.

I can't add anything to ninasgramma's excellent answer other than that.

Answer 4

for this reason human beings use accountants. you think of equipment is an fee? the government could disagree, and study it an asset. you may opt for to declare the depreciation each and every 12 months as a tax deduction, or you're able to declare all of it. See, complicated. in case you desire to probability a tax audit, specific, purchase the stuff and declare all of it as a employer fee, devoid of producing any employer sales, and spot how briskly the IRS comes down on you.