Thanks. Do these rules apply the same if the new business ie writing would be considered a start up and these are start up costs? I read that the IRS will determine if a new business should have had start up costs deducted based on whether or not that business has made a profit over a three year period. I was trying to determine the best course of action for this years return with consideration to the fact that I have decided on the career switch after being terminated this year and have spent a good amount of money on the equipment being used expressly for this new venture. I would prefer to claim the purchases in the year acquired or 1st used as opposed to waiting for 3 years to see if I have made a profit and then not being able to claim the equipment or not being able to receive the full tax benefit that I may have been entitled to if I had claimed it in the year of acquisition. If this was not a creative field and there was more of a clear delineation between what is a writer and a business as opposed to a more straightforward business model, it would be easier to determine hence the need to reach out on this site.
