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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.
‎February 22, 2021
9:49 AM