I am wanting to start a business in 2021. I have several grand in start up costs (equipment) from July of 2019 as well as training and certification requirements in 2019. I purchased the equipment as I need to be proficient in its operations before being able to run a business. How far back can I claim or deduct start up costs prior to opening the business?
I have heard, up to January 1 of the year the business started, I have heard 1 year prior to the start of the business, and I have heard any start up costs regardless of the date. If I start the business January 1, 2021, will I be unable to claim any expenses form 2020 (Only a few hundred dollars)? What about the equipment I purchased in 2019? Should I start the business December 31, 2020 or January 1, 2021?
Can anyone clear this up and point me in the direction to solid evidence (Law or tax code) from the IRS to back the claim or clarify this further?
