New Business

[bskbrown1]

Hello. I started a new business 2023 after taking an online education course (Sept and Oct) for a fee and then becoming a travel agent and starting with a host agency as an LLC in Nov 23 for additional fees. I didn't make any income in 2023 so I thought I could wait to just file with this years filing 2024. But now it is asking me if I started my business in 2024 and isn't giving me an option to enter 2023 but it asked later if I have carryover expenses which I thought would be my LLC startup cost, the education cost to become certified, and other startup costs, which is well above what I have made so far. What do I do??? No I haven't paid any taxes for this business so I know I will owe.

[RobertB4444]

You have a couple of options.  

You can amend your 2023 return and enter the business there.  The expenses belong in the year that they are taken and putting the 2023 expenses into 2023 will get you a refund for last year and maybe allow some of the loss to roll into 2024.

Or you can create an asset called "Start Up Costs".  You will amortize (depreciate) that asset over 15 years, getting to deduct one fifteenth of it every year.  So you will split up the 2023 expenses that way.

@bskbrown1 

[AmeliesUncle]

Was the business 'open' (ready and trying to earn income) in 2023?  If so, startup expenses go on the 2023 tax return (and some excess amount may be spread to the next 15 years).

Education for starting a new business is not a deductible business expense.