Discussion:Start up expenses no revenue
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Discussion Forum Index --> Basic Tax Questions --> Start up expenses no revenue
Discussion Forum Index --> Tax Questions --> Start up expenses no revenue
| 25 January 2008 | |
| Person starts a business in 2007. Only had expenses, organizational and start up. I assume the person files a tax return showing only expenses for 2007 since no sales or revenue was received?? any comments are appreciated
Neil | |
| 25 January 2008 | |
| SL over | |
| 25 January 2008 | |
| so it is not uncommon if a company starts at the end of a year the first tax return could show all expenses and no revenue. DZCPA, The SL over 60 months is old news now you have to do it over 15 years or expense it all in the same year if 5K or less | |
| 25 January 2008 | |
| expense 5k of startup.
rest of startup would be amortized. Expenses are ok with out income as long as they had started business. (ie. store opens doors, accountant hangs shingle) If they are not available for business then the expenses wait until the are "IN" Business. | |
| 25 January 2008 | |
| but if the expenses are spent in 2007 and do not "in" untill 2008 how can you deduct what you spent in 07 in 08? | |
PostingFromWork (talk|edits) said: | 25 January 2008 |
| Because they are suspended. They go to the same far off land where NOL's, PAL's, and carrying charges hide. | |
| 25 January 2008 | |
| WOW so one better hang their shingle in the same year as expenses or don't pay for the bills (cash basis) untill the year you have your shingle??? | |
| 25 January 2008 | |
| If the taxpayer is open for business and is paying rent, utilities, etc. - expenses that are not considered startup - and just hasn't made any sales, I say those expenses are deductable and would put them on the return for the year they are incurred. As DZ said, you don't have to wait until the first dollar is made. | |
| 25 January 2008 | |
| so the return will be all expenses (loss) and no income?????correct | |
| 25 January 2008 | |
| Yep, that's what I would do for anything that is not start-up. | |
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