How do I write off my biz expenses that I made before I launched my business?
I officially started my business paperwork (EIN, SOS, etc..) in Jan 2019 but I started buying equipment for my business in Nov of 2018 to prep for it. I know I can write these expenses off but how do I do it since I didn't actually start the business until the new year. I know when I'm filing taxes next year I will fill out the new business info for THIS year so would I write the biz expenses off during that time or write them off with this year taxes even though the business was not started yet?
Answers
Jay
You hire a CPA. At the very least get an accountant.
StephenWeinstein
Equipment is complicated because it is normally not supposed to be written off in just one year. Instead, the cost is supposed to be spread out over several years, through a process called "depreciation". If you knew how to do that, you wouldn't be asking this question, so you probably need a professional tax preparer or accountant to help you.
Wayne Z
Nothing is deductible until you actual "open" for business. If you will deduct those expenses on your 2019 return filed in 2020.
Pearl L
i would just write down exactly how nnuch you spent on it and if you have questions then you should ask the irs about it
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