silverm00n Posted February 4, 2007 Share Posted February 4, 2007 Were you guys able to write off all the expenses you created before you became a business after you became a business? Like the $$$ you spent on your research and development. Everyone is telling me no, I'm hoping you guys will tell me otherwise. Quote Link to comment Share on other sites More sharing options...
eugenia Posted February 4, 2007 Share Posted February 4, 2007 Hmm, no. Quote Link to comment Share on other sites More sharing options...
David Fields Posted February 4, 2007 Share Posted February 4, 2007 no can do. Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted February 4, 2007 Share Posted February 4, 2007 One thing you can do though, is the ability to deduct the cost of ingredients purchased prior to becoming a biz. That is, ingredients bought before you were a biz but used after you became a biz can be deducted. I think this is outlined in publication 535. Quote Link to comment Share on other sites More sharing options...
pdevine Posted February 4, 2007 Share Posted February 4, 2007 I spoke with my accountant and he told me that I could capitalize my business. That is, take the $ that I've spent on supplies in the past years and if they amounted $10,000 or less then we could deduct them all at one time and if it was more than $10 k, then he would spread the cost out over so many years. HTH Portia Quote Link to comment Share on other sites More sharing options...
danny Posted February 4, 2007 Share Posted February 4, 2007 Seems like an easy question, but it isn't. You should only rely on professional advice. It depends on a lot of variables. What type of business you are, the state that you’re operating in, method of expensing. Many variables. Most CPAs that work with small business will give you a free consultation in order to win your business. You may not be able to write them off under your present set up, but may be able to as an S or C corporation. With today’s computers, all of the paperwork associated with incorporating has become relatively easy. Using software like quick books and turbo tax together, or many of the other good software on the market, you can even do your own corporate taxes and just hire your CPA for a once per year review before you file. Quote Link to comment Share on other sites More sharing options...
Linnyeg Posted February 7, 2007 Share Posted February 7, 2007 I'm in Ontario so I'm sure it's different here, but I was able to sell the business all of the supplies I had personally bought before I became a business. Hopefully that makes sense. Quote Link to comment Share on other sites More sharing options...
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