Hi Hi, my client opened up a start-up company last year. The business has zero income but incurred around $30k in expenses. Will it make any difference to his tax return if we select to take the $5000 start-up cost deduction?
Best Answer Click here
This discussion has been locked.
No new contributions can be made. You may start a new discussion
here
Read IRC section 195.
That sounds like a really good question for them to present to their tax professional. That person will have the complete picture of all of the aspects of the tax return.
Did the business really open last year?
Read IRC section 195.
If they opened up the business and had $30K in expenses but zero income, it sounds like someone forgot to unlock the front door of the business.
thanks everyone for your reply. Yeah... they started their business last year and are in the R&D stage of the business.
Then read IRC Section 174, too.
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.