Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-03-2008, 10:59 AM
Junior Member
 
Join Date: Mar 2008
Posts: 3
What can I write off?

If you start a sole-proprietorship under a DBA name and you have spent money to improve the business, yet you dont make anything that year, are you able to write off anything for that year?

Had a rough rough year and actually invested into something else which stopped me from actually doing my business since I was learning something new to improve it.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-04-2008, 07:52 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
Can you write off expenses even if you have a loss in the tax year?

Absolutely! The Tax Law allows a taxpayer to deduct what is termed Reasonable, Necessary and Ordinary Expense that are incurred in the production of Income.

Hence, in simple language, you can deduct all expenses that were incurred in your business. Certain expenses have to be capitalized and then amortized or depreciated depending on the character of the item that is capitalized.

Typically, Goodwill and Business Start-up expenses are capitalized and amortized over 60 months whereas other expenditures such as Fixed Assets, that are Computers, Furniture and Equipment are capitalized and depreciated from periods ranging from 5 to 7 years. All of the these expenses are either amortized or depreciated based upon IRS rules and regulations.

If the expenses were directly related to the business they are deductible. If the expenses are operational expenses such as rent, telephone or utilities, they may be deductible immediately in its entirety.

If the expenses incurred are such that they are a physical asset they are to be depreciated in the year of purchase. Also, you may be eligible to take a section 179 deduction entitling you to an immediate write-off of the item provided yo meet certain conditions.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 03-10-2008, 05:19 PM
Junior Member
 
Join Date: Mar 2008
Posts: 3
Thank you very much.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Can you write off development costs for real estate not purchased. jmramsey Miscellaneous 1 03-09-2008 04:45 PM
What method is used to write-off software used in business? Majid Depreciation 0 03-03-2008 12:42 AM
write offs on capital gains on second home lhawkins Capital Gains 2 07-30-2007 04:05 PM
write-off's to avoid paying AMT? leslie Alternative Minimum Tax 1 04-18-2007 02:29 AM
Can u write off a loss on sale of home? mongrel Capital Gains 1 01-27-2007 12:01 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning