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Based on your information - all your expenses are classified as start-up expenses.If you had the start-up costs for a new business, you can deduct $5,000 of the total start-up costs and $5000 or organizational costs in the year the business started and the remaining costs over a 15 year period.You would be able to start deducting start-up expenses on 2013 tax return if the business started during 2013. Generally - the business is considered as started if you have a product or services for sale.For 2012 - because you had a corporation - the tax return is required even there were no business activities.
What about "Fiscal year" election option ? I am a Corp-S. Are you familiar with Corp-S fiscal year election ? If I deduct the $10,000 you said, against what, since I did not receive pay (60 days delay for 1099 bills) for Nov/Dec 2012 consulting until Jan/Feb 2013. Can I deduct $10,000 against my full salary W2 job from Jan-Sept 2012 when I worked as employee for CSC ?
All S corporations, regardless of when they became an S corporation, must use a permitted tax year. A permitted tax year is any of the following.
•The calendar year.
•A tax year elected under section 444 of the Internal Revenue Code.
•A 52-53-week tax year ending with reference to the calendar year or a tax year elected under section 444.
•Any other tax year for which the corporation establishes a business purpose.
If an electing S corporation wishes to adopt a tax year other than a calendar year, it must request IRS approval using Form 2553, instead of filing Form 1128.
I can alway google and cut/paste text that I can't conclude anything. I need expert who know enough to make actionable suggestion and not cut/paste all possible gibberish. I still can't conclude what/how I can go about. I guess I know slightly more than you, I know about fiscal election. I am disappointed.
If you are looking for expert's opinion - your request to use a different tax year for your S-corporation will be rejected by the IRS because there is no business purpose for that.You need to use the calendar year.