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I am just setting up an S-Corp as I am a real estate investor,

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currently not planning to buy...
I am just setting up an S-Corp as I am a real estate investor, currently not planning to buy and hold properties. I was advised that I cannot back date the start of the corporation, as it won't be "approved" by the state I live in until this month. I have incurred numerous expenses since May of this year (education, office expenses, mileage, etc.). Can I still claim them for taxes if I use this calendar year as my tax year? Should I say that I want my tax year to go from May 1, 2009 to April 30, 2010. I do not want to miss out on deductions.
Submitted: 8 years ago.Category: Tax
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Answered in 16 minutes by:
12/2/2009
Tax Professional: Merlo, Accountant replied 8 years ago
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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Hello terry,

 

In the first year that you actively start your business, you may deduct start up expenses which were incurred prior to that time up to a maximum of $5,000. You may also deduct up to another $5,000 for organizational fees. Any amounts you paid for start up expenses or organization fees which exceed these amounts must be amortized over a period of 15 years.

 

If this was helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you terry

 

 

Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Verified
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