{"id":49,"date":"2018-02-14T14:45:17","date_gmt":"2018-02-14T14:45:17","guid":{"rendered":"http:\/\/www.rikardneal.com\/blog\/?p=49"},"modified":"2018-02-14T14:45:17","modified_gmt":"2018-02-14T14:45:17","slug":"what-start-up-costs-can-you-deduct","status":"publish","type":"post","link":"https:\/\/www.rikardneal.com\/blog\/index.php\/2018\/02\/14\/what-start-up-costs-can-you-deduct\/","title":{"rendered":"What Start-Up Costs Can You Deduct?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-50 alignleft\" src=\"http:\/\/www.rikardneal.com\/blog\/wp-content\/uploads\/2018\/02\/200359336-001-300x199.jpg\" alt=\"\" width=\"300\" height=\"199\" srcset=\"https:\/\/www.rikardneal.com\/blog\/wp-content\/uploads\/2018\/02\/200359336-001-300x199.jpg 300w, https:\/\/www.rikardneal.com\/blog\/wp-content\/uploads\/2018\/02\/200359336-001.jpg 725w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Launching a new business takes hard work &#8212; and money. Costs for market surveys, travel to line up potential distributors and suppliers, advertising, hiring employees, training, and other expenses incurred before a business is officially launched can add up to a substantial amount. Rikard &amp; Neal CPAs, PLLC, a Memphis area CPA, works with new and developing businesses throughout the Memphis area to help simplify business formation and incorporation procedures.<\/p>\n<p>The tax law places certain limitations on tax deductions for start-up expenses. Let&#8217;s cover them.<\/p>\n<ul>\n<li>No deduction is available until the business becomes active.<\/li>\n<li>Up to $5,000 of accumulated start-up expenses may be deducted in the tax year in which the active business begins. This $5,000 limit is reduced (but not below zero) by the excess of total start-up costs over $50,000.<\/li>\n<li>Any remaining start-up expenses may be deducted ratably over the 180-month period beginning with the month in which the active business begins.<\/li>\n<\/ul>\n<p>Instead of deducting start-up costs, a business may elect to capitalize them (treat them as an asset on the balance sheet). Deductions for &#8220;organization expenses&#8221; &#8212; such as legal and accounting fees for services related to forming a corporation or partnership &#8212; are subject to similar rules.<\/p>\n<p>Whether you need individual or business tax advice, give us a call at 901-685-9411, our Memphis CPA Firm can help. We&#8217;ve got the answers you&#8217;re looking for on <a href=\"http:\/\/www.rikardneal.com\/income-tax-preparation-services.htm\" target=\"_blank\" rel=\"noopener\">tax preparation<\/a>, <a href=\"http:\/\/www.rikardneal.com\/tax-planning-services.htm\" target=\"_blank\" rel=\"noopener\">tax planning<\/a>, and <a href=\"http:\/\/www.rikardneal.com\/business-incorporation-services.htm\" target=\"_blank\" rel=\"noopener\">incorporation services.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Launching a new business takes hard work &#8212; and money. Costs for market surveys, travel to line up potential distributors and suppliers, advertising, hiring employees, training, and other expenses incurred before a business is officially launched can add up to a substantial amount. Rikard &amp; Neal CPAs, PLLC, a Memphis area CPA, works with new [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":{"0":"post-49","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business-tax","7":"entry"},"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/49","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=49"}],"version-history":[{"count":1,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/49\/revisions"}],"predecessor-version":[{"id":51,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/49\/revisions\/51"}],"wp:attachment":[{"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=49"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=49"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=49"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}