Tax Year 2016: Can I deduct home business expenses if I haven't made income yet?

amygeist1985 — Thu, 27 Apr 2023 22:28:44 GMT

I purchased an online training program in 2016 as well as an ipad to be used for business purposes. I haven't completed training and won't be launching my business until June 2017. Can I deduct any costs associated w/ training and ipad this year?

No. You will wait until you start your business to claim...

KarenL2 — Thu, 06 Jun 2019 09:34:18 GMT

No. You will wait until you start your business to claim your expenses. The expenses you incurred preparing to launch your business are considered Start-Up costs and can be claimed on your 2017 tax return.

"Business start-up and organizational costs are generally capital expenditures. However, you can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred after October 22, 2004. The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Any remaining costs must be amortized.

Start-up costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business. Organizational costs include the costs of creating a corporation. "

Note: You can elect to deduct or amortize certain business start-up costs. Refer to chapters 7 and 8 of Publication 535, Business Expenses.

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How to get there in TurboTax:

While inside the software and working on your return, type start-up expenses in the Search at the top of the screen (you may see a magnifying glass there). There will be a popup that says Jump to start-up expenses. Select that to get to the general area.

topic Tax Year 2016: Can I deduct home business expenses if I haven't made income yet? in Deductions & credits

Tax Year 2016: Can I deduct home business expenses if I haven't made income yet?

No. You will wait until you start your business to claim...