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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I am just setting up an S-Corp as I am a real estate investor,

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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: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.

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.


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Thank you terry



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