Can i deduct 2021 start up expenses for income earned in 2022?

I have expenses on my 2021 form 8995

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1 Best answer

Expert Alumni

Feb 6, 2023 12:32:00 PM

Your out-of-pocket expenses may actually be "Startup costs".

"When starting a business, owners should treat all eligible costs incurred before beginning to operate the business as capital expenditures that are part of their basis in the business.
Generally, the business can recover costs for assets through depreciation deductions.
For costs paid or incurred after September 8, 2008, the business can deduct a limited amount of start-up and organizational costs."
Start-up costs become an asset that is reduced over time.

Here’s how businesses can deduct startup costs from their federal taxes

Expert Alumni

Feb 6, 2023 12:32:00 PM

Your out-of-pocket expenses may actually be "Startup costs".

"When starting a business, owners should treat all eligible costs incurred before beginning to operate the business as capital expenditures that are part of their basis in the business.
Generally, the business can recover costs for assets through depreciation deductions.
For costs paid or incurred after September 8, 2008, the business can deduct a limited amount of start-up and organizational costs."
Start-up costs become an asset that is reduced over time.