JeffreyR77
Expert Alumni

Business & farm

If you started the business in 2019 and shut it down the same year, the expenses would be $2000 in start-up costs taken as ordinary expenses and $1000 as 2019 expenses.

 

If you abandoned the business in 2019 without ever starting it, you have a $3000 capital loss in 2019.

 

The guidance on how to address your expenses is very concise in Publication 535.  There is not a lot of discussion or language to interpret.