Did your business incur expenses before you were technically “open for business”? Did you know that you can write off some of these expenses against your business as soon as you are operational?
Read on for tips and information about deducting startup costs, plus advice about when you may not want to immediately claim these deductibles.
What Are Deductible Startup Costs?
The IRS defines “startup costs” as deductible capital expenses that are used to pay for:
1) The cost of “investigating the creation or acquisition of an active trade or business.”This includes costs incurred for surveying markets, product analysis, labor supply, visiting potential business locations and similar expenditures.