I think it is to your advantage to depreciate them rather than a lump sum.
- If you take a lump sum and you start to make money you will deplete your income down to zero until you've used all of the deduction. And then you will be paying full tax.
- If you depreciate it, you may have some profit leftover that you will pay tax on, but you always get the deduction at the highest tax rate.
You can depreciate these items if you take them as a group. Essential to the startup effort is creating a business plan. A detailed map of the new business. These expenses can be included:
- Research Expenses
- Borrowing Costs
- Insurance, License, and Permit Fees
- Technological Expenses
- Equipment and Supplies
- Advertising and Promotion
- Employee Expenses
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
