I'm purchasing equipment to start a hydroponic farm. How do i file my taxes so i can get money back for starting my business and buying this equipment?

[mattyyoung143]

I have the equipment and im  growing samples but i haven't sold anything yet.  And i haven't purchased a business license yet because no one has given me a straight forward answer because its an indoor farm and not a traditional farm.

[Critter]

Did you incorporate yet or is this simply a sole proprietorship ?

[mattyyoung143]

Sole

[Opus 17 · Accepted solution]

You recoup your startup costs in the first year the business actually has revenue to report.  You can deduct up to $5000 of startup costs as expenses, and amounts over that generally have to be amortized over 15 years.  If you won't have revenue in 2017, then you won't have a schedule C on your tax return and you won't report the business.  You will report the business on your 2018 tax return and deal with your startup costs then.