| Tax Write-off, before business license. |
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CeSu-Pro
First Time Poster
Cash: $ 0.25
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Joined: 09 Jul 2005
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| Tax Write-off, before business license. |
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Hello everyone,
I am young and new to this. But just recently I have published my DBA and now I must wait three weeks before I can get the business license. The problem with that is, I need to make a purchase before the end of July. I want to be able to write-off the purchase because it is a business purchase. But I don't know if I can write it off since I would be getting it before I actually have my business license. So, basically, I am just asking if anyone knows the rules on that. I have other things that I have purchased before that is directly for the business and was also wondering about how the write-offs work for those. Any Information would be greatly appreciated.
Thank You,
Loren
Celestial Suicide Productions
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Sat Jul 09, 2005 9:14 pm |
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bong12187
Preferred Member
Cash: $ 24.50
Posts: 120
Joined: 31 Jul 2005
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| Re: Tax Write-off, before business license. |
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quote:
Originally posted by CeSu-Pro
Hello everyone,
I am young and new to this. But just recently I have published my DBA and now I must wait three weeks before I can get the business license. The problem with that is, I need to make a purchase before the end of July. I want to be able to write-off the purchase because it is a business purchase. But I don't know if I can write it off since I would be getting it before I actually have my business license. So, basically, I am just asking if anyone knows the rules on that. I have other things that I have purchased before that is directly for the business and was also wondering about how the write-offs work for those. Any Information would be greatly appreciated.
Thank You,
Loren
You need a business license to operate a business.. Publication 17 states that your business expenses must be directly related to operation of your business. Purchasing equipment related to your business may be allowed for deduction ( I say "may be allowed" because I don't know what you bought). I once set up an S corporation to purchase a property. I couldn't get a business license until I have an article of incorporation and bylaw. I had a lawyer set up one and then I applied for a business license. I was able to deduct the attorney's cost even though I didn't receive my business license yet.
B
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Fri Aug 05, 2005 9:50 pm |
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bnsit.com
New Member
Cash: $ 0.25
Posts: 5
Joined: 15 Aug 2005
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You should be able to write it off as a shareholders expense if you are a shareholder in the new corporation.
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Mon Aug 15, 2005 5:03 pm |
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