Personal or business loss?

[joeh1959]

I paid an architect $3000 to draw up a plan to build out a leased space to start a smoothie bar, but the deal fell through and I did not lease or intend to in the future. Can I take this off as a personal or business loss?

[Vanessa]

Did you have an actual business started?  Was it an expansion of a business?

[joeh1959]

No and no.

[joeh1959]

First time to start business, but did not happen. No paperwork ever started between me and person I would have leased from.

[Vanessa · Accepted solution]

Then no, these costs are not deductible at all.

"The costs you had before making a decision to acquire or begin a specific business. These costs are personal and nondeductible. They include any costs incurred during a general search for, or preliminary investigation of, a business or investment possibility." https://www.irs.gov/publications/p535#en_US_2018_publink1000208613