Perhaps. The prior posts were based on your statement that you had purchased equipment and supplies for your business. Those expenses are deductible in the year you incurred them. The exception would be for equipment that has a useful life greater than one year as such equipment needs to be depreciated. Yet, there are other Internal Revenue Code provisions that allow for accelerated depreciation. TurboTax will guide you through the options you have regarding depreciation and expensing.
Your most recent post seems to be raising the issue of business start-up costs. Here, the analysis is a little different. The IRS provides the following regarding business start-up costs:
Business startup and organizational costs are generally capital expenditures. However, you can elect to deduct up to $5,000 of business startup and $5,000 of organizational costs paid or incurred after October 22, 2004. The $5,000 deduction is reduced by the amount your total startup or organizational costs exceed $50,000. Any remaining costs must be amortized.
Startup costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business. Organizational costs include the costs of creating a corporation or partnership.
How to make the election.
You elect to deduct the startup or organizational costs by claiming the deduction on your income tax return (filed by the due date including extensions) for the tax year in which the active trade or business begins. For costs paid or incurred after September 8, 2008, you are not required to attach a statement to your return to elect to deduct such costs.
As indicated above, start-up costs are limited. As you review this guidance and how it applies to your tax situation, follow-up with any additional questions you may have.
@Mountain4
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