Welcome Guest. Register Now!  


Itemized Deductions Schedule-A


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 12-09-2014, 07:13 PM
Junior Member
 
Join Date: Dec 2014
Posts: 1
Starting a New Business and Deductions

I have roughly $12k in business expenses related to launching a start up. I am fully employed by another company and I don't yet have my LLC formed. Can I claim these start up costs on my personal taxes without an LLC or business liscense? If not can I start the LLC in January of 2015 and still claim the expenses from 2014?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 12-10-2014, 08:23 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by gregnet View Post


#1;I have roughly $12k in business expenses related to launching a start up. I am fully employed by another company and I don't yet have my LLC formed. Can I claim these start up costs on my personal taxes without an LLC or business liscense?


#2; If not can I start the LLC in January of 2015 and still claim the expenses from 2014?
#1; If you are investigating a specific biz to start or buy, and the deal doesn't work, you can still deduct your personal expenses on Sch A of your Form 1040 as "miscellaneous expenses.
If you are searching for a business but have no specific business in mind, and you decide not to buy any business, you cannot deduct these expenses as they are not related to any specific business. So, if you ultimately decide not to go into business, the portion of costs you paid to generally investigate the possibilities of going into business at all, or to purchase a non-specific existing business, are considered personal costs and are not deductible
#2;yes. a s you can see, start up costs are handled differently from ordinary business expenses. You get a limited deduction ,$5k in the first year that the business is up and running and them amortize the rest over a period of 180 months for 15 years. If your business was not up and running in 2014 but is in 2015 then you need to start deducting start up costs in 2015. If it was up and running in 2014, that's when you start deducting start up costs.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Business tax deductions for LLC petertheil56 Limited Liability Company 1 03-26-2014 03:48 PM
Starting 2013, the maximum on deductions for long-term care insurance premiums has been increased! TaxGuru Medical 0 11-11-2013 04:39 PM
IRS offers 5 essential Tax Tips for starting a new Business TaxGuru For 2013 1 11-03-2013 11:40 PM
starting a new business, tax questions. bjt22 Limited Liability Company 1 08-02-2011 08:41 PM
Can I collect unemployment while starting up a business Daryl Miscellaneous 1 11-24-2009 03:51 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.