New Business License, Retroactively Claim Expenses? Hey folks,
I have been a 1099 Independent Contractor for all of 2015. The company has been cutting me bi-weekly checks made out directly to me, which I deposit in my personal checking account. I have recently been told that I should acquire a business license, set up a business account and invoice the company for my work. All transactions would then run through my business account. I would then be able to deduct items such as my home office, mileage, etc..
My question is: Since I would be getting a business license so late in the year, would I be able to still claim any expenses through the business account that were incurred earlier this year? I've had my home office all year, but I haven't had my business license all year. My work will not change at all due to a business license, it seems like it would just be more of a formality.
For example, if my 2015 expenses amount to $5,000 (1k from November - end of year & 4k from beginning of year - November) can I only claim those $1,000 or can I claim the whole $5,000.
Any advice is appreciated.
Thanks,
John |