@ErnieS0 thanks Ernie. Our EIN is for general partnership. Looks like there are 2 proposed routes depending on whether we meet "substantial service" criteria mentioned by @Mike9241 :
1 - File schedule C in 2021 to claim expenses incurred in 2021 AND file schedule C in future years, if we qualify for "substantial service" in 2022 (no service was provided in 2021 since our listing didn't go live until 2022). We can do this through "Election for Married Couples Unincorporated Businesses" @LeonardS
2- If we are not qualified for "substantial service", then we are not required to file schedule C; and we are not required to file partnership tax return in 2021 since we have no income in 2021 and will not be able to deduct any expenses since we were not in business in 2021
My question is that if we fall under #2, can we claim all expenses incurred in 2021 on 2022 partnership return including furniture, appliance and supplies (bed linens, paper towel etc) or only capitalized asset with depreciation (furniture, appliance)? Can we elect the de minimis safe harbor rule for capitalized asset under $2,500 to expense all upfront in 2022?
