Independent Contractor but will not have an income from this until 2024

[rslec01]

Hello,

I just started as an independently contracted travel advisor. Because it is commission based and I won't have any clients traveling until next year, I will not have any income this year (and I assume no 1099 issued.) If I do things for setting up my personal business, such as registering the name, purchasing a phone specifically for the business, purchasing a domain, setting up a home office, etc, should I wait until January? Or will the expenses still be deductible for the 2024 year, when I will start receiving an income, despite being purchased at the end of this year? Are there potential expenses that would not be deductible unless I wait for the new year?

[ElizabethW2]

Hello!

I hope your day is going well!  How exciting to open your own business!

Getting a business set up and generating income takes time and money!  Those expenses you're incurring to get started are 'startup expenses'.   Startup costs are treated differently than ordinary operating costs in that they have to be capitalized (spread over several years).  Here is a link to our Support Site that will aid in determining which costs must be treated as start up expenses.

I hope this information answers your question.  If you found it helpful, please say "Thanks" by clicking the thumb icon below.  If you found it to be the best answer, please click on "Mark as Best Answer".

Elizabeth W., EA