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ALEX O
ALEX O,
Category: Tax
Satisfied Customers: 137
Experience:  Founding Partner at O&G Tax and Accounting Services, LLC
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I had a couple tax questions about a sole proprietor

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Hi there, I had a couple tax questions about a sole proprietor business I’m opening, just filed my FBN todau
JA: Have you talked to a tax professional about this?
Customer: Only briefly
JA: Anything else you want the Accountant to know before I connect you?
Customer: No that’s alright

 

Hello, my name is Alex, a licensed CPA. Happy to help you get this resolved.I'm reviewing your question now…P/S: You may see a window requesting expert call; this is automatically generated by the system...and not by me

Whats your question?

Customer: replied 4 days ago.
Hi there, so I’m wondering how I should report start up costs for my business, I need to buy a computer and a camera which, in total, will be less that $5,000.
Customer: replied 4 days ago.
I would ideally like to write it off somehow to receive the refund next year, but I have not made any money with the business yet.

Hi there, so I’m wondering how I should report start up costs for my business, I need to buy a computer and a camera which, in total, will be less that $5,000.

 

Yes , you can deduct these expenses as startup cost

 

Start-up costs include:

  • Survey of potential markets
  • Advertising the opening of the business
  • Consulting or other professional fees paid in connection with starting the business.
  • Wages to employees being trained for the new business
  • Analysis of possible facilities, labor force, supplies, etc.
  • Travel and related expenses to secure distributors, suppliers and customers.
Customer: replied 4 days ago.
My main question is if I can report start up costs as a sole proprietor if the business has not made any money yet. I will be reporting income with other 1040 and w4 jobs this year.

Yes, you can. The startup cost will create a loss which will eventually offset income from other sources. the maximum you can deduct for start up to $5k

 

You may elect to deduct up to $5,000 of start-up costs in the year your business begins operations. The $5,000 first-year deduction limit is reduced by the amount of start-up costs exceeding $50,000. Start-up costs that exceed the first-year limit of $5,000 may be amortized ratably over 15 years

Customer: replied 4 days ago.
Thank you for that!

Thank you for allowing me to help you with your question . Your 100% satisfaction is my goal. To continue our conversation, use the reply box below. If you are fully satisfied, please rate my service with 5 stars

 

ALEX O and 5 other Tax Specialists are ready to help you