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veropando
Returning Member

I bought a computer in 2014 to start a blog to advertise my business, can I claim it as a start up cost in my 2016 tax return? My business started on 2016

 
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PatriciaV
Expert Alumni

I bought a computer in 2014 to start a blog to advertise my business, can I claim it as a start up cost in my 2016 tax return? My business started on 2016

Yes, you may report as Startup Costs any expenditure that prepares your business to generate income, before you are actually open for business. This includes expenses that would normally be deductible if the business was active, like office equipment.

Capital assets that would normally be subject to depreciation may not be included as startup costs. However, the current Safe Harbor Election allows you to expense capital assets costing $2,500 or less.

You may expense up to $5,000 in startup costs in the year that your business starts.

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PatriciaV
Expert Alumni

I bought a computer in 2014 to start a blog to advertise my business, can I claim it as a start up cost in my 2016 tax return? My business started on 2016

Yes, you may report as Startup Costs any expenditure that prepares your business to generate income, before you are actually open for business. This includes expenses that would normally be deductible if the business was active, like office equipment.

Capital assets that would normally be subject to depreciation may not be included as startup costs. However, the current Safe Harbor Election allows you to expense capital assets costing $2,500 or less.

You may expense up to $5,000 in startup costs in the year that your business starts.

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