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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I withdrew $140K from my IRA to start a small business in

Customer Question

I withdrew $140K from my IRA to start a small business in Jan 2015, i did not pay taxes upfront, is there a way to defer taxes owed due to small business start up
Submitted: 9 months ago.
Category: Tax
Expert:  Lev replied 9 months ago.

There is was a way to continue deferring the tax liability as long as the money are in the IRA account.

As soon as funds are distributed - income is recognized fro tax purposes - and reported on your tax return.

Expert:  Lev replied 9 months ago.

There is no additional deferral option regardless how the money are used.

But depending on your business expenses - you might be eligible to deduct some of these expenses as soon as your business already started.

If these are startup expenses - they are capitalized - and you only start deductions after the business started.

Please communicate back if you have any specific expenses which you are not sure where or how to deduct.

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