Hi I have a question related to self-employed tax. I started earning income for my services in mid-June (paid in July) of this year. At year-end, can I deduct expenses related to my business even though it was incurred prior to my earnings in June? For instance, can I deduct business expenses incurred in April?
2007-07-02 17:24:31 · 3 answers · asked by heuiim 2 in Business & Finance ➔ Taxes ➔ United States
You can deduct business expenses from the date you were open for business, not from the date that you first received income.
Prior to opening for business, expenses of establishing your company, such as advertising, training, travel, consulting, would have to be amortized, generally over 15 years, and could not be deducted in one year.
2007-07-02 17:47:05 · answer #1 · answered by ninasgramma 7 · 3⤊ 0⤋
You can deduct legitimate business expenses incurred any time during the tax year.
2007-07-03 00:32:48 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
If they related to the production of your business, you can deduct any expense if it's ordinary and necessary. The timing of the expense depends on the nature of your business. For example, you advertised your apartment for rent starting in January and you've got tenant in May. Advertising is your expense. So as always in taxation, it depends on circumstances
2007-07-03 11:54:08 · answer #3 · answered by alikmal 2 · 1⤊ 0⤋