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jody_ken
Level 2

Self-employed startup mileage for market research

I started a sole-proprietorship consulting business in 2019.  Before "hanging out my shingle" I met with several colleagues for market research, thus incurring mileage expenses.  As this happened before opening for business, is this a legitimate business expense?

 

Also, in TurboTax would this be listed in "startup costs" or "business vehicle expense"?

 

Thank you in advance.  Ken

2 Replies
Carl
Level 15

Self-employed startup mileage for market research

is this a legitimate business expense?

No. Vehicle use of a non-business vehicle not owned by the business prior to being officially "open for business" is not a legitimate business or start-up expense.

Don't get confused with what you read in Publication 535 about travel costs being start-up costs. That refers to things like plane tickets, bus fares, cab fares, etc. and other items related to transportation where you can provide solid proof that "this trip cost $X dollars and was for the sole purpose of getting my business off the ground."

 

 

jody_ken
Level 2

Self-employed startup mileage for market research

Thank you very much Carl.  Unfortunately I was misinterpreting and am very glad I asked.  Sincerely, Ken

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