Your out-of-pocket expenses may actually be "Startup costs".
- "When starting a business, owners should treat all eligible costs incurred before beginning to operate the business as capital expenditures that are part of their basis in the business.
- Generally, the business can recover costs for assets through depreciation deductions.
- For costs paid or incurred after September 8, 2008, the business can deduct a limited amount of start-up and organizational costs."
- Start-up costs become an asset that is reduced over time.
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