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joeh1959
New Member

Personal or business loss?

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?

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Accepted Solutions
Vanessa
Level 3

Personal or business loss?

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

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4 Replies
Vanessa
Level 3

Personal or business loss?

Did you have an actual business started?  Was it an expansion of a business?
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joeh1959
New Member

Personal or business loss?

No and no.
joeh1959
New Member

Personal or business loss?

First time to start business, but did not happen. No paperwork ever started between me and person I would have leased from.
Vanessa
Level 3

Personal or business loss?

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

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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