Started out a small business Please help!
I started out a small business in mid December 2007 and i had about $40k in start up expenses. i generated about $4000 gross income in this half a month. for some reason i didnt include this business income and expenses in my 2007 tax return because i thought it's only half a amonth, so my plan is to include this income ($4k) income and $40k expense in this year 2008 business tax return. Now i'm doing my own tax and kindda get worry.
My question is:
is it ok to include 2007 income and use 2007 expenses in this 2008 tax return? or
did i make a mistake, i should file this portion in last year return?
or should i ignore 2007 incomes and expenses? will the irs find out about that $4000 income in the last half month of 2007?
What is my worst scenerio? tax penalty, etc...
Last edited by seek4help : 03-10-2009 at 12:51 AM.