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  1. #1
    Join Date
    Aug 2007
    Posts
    12

    Default Tax Deduction On Business Start Up Expenses

    I started a business at the end of 2006 and did not claim my expenses on last year's return as my accountant advised me not to, she said I could the following year as I had not started earning income until the beginning of 2007. To make a long story short I closed my business in early summer of 2007 and wanted to know if on this year's tax return I could still claim my expenses from that business? I live in MD>

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Tax Deduction On Business Start Up Expenses

    And your accountant said what?

    In part it's going to depend upon the nature of the business, the expenses at issue, whether you actually commenced business operations, and whether you produced any revenues. If you bought business letterhead and business cards, you have a more compelling case to take a deduction for your failed venture than if you're trying to write off a new computer (which is now dedicated to personal use). Taking significant deductions for a business plan that was never put into action, or which was tried for a few months then abandoned, may be a fast track to an audit.

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