Can you deduct startup costs for a business that had no sales until the next year?
We started a business in 2007 but didn't start selling our product until 2008. Are the 2007 startup costs deductible on our 2007 taxes?Generally, your startup costs are deductible, even if you don't make sales or turn a profit immediately. However, the time frame for deducting expenses (and the amount you can deduct) can depend on the form of legal entity you have chosen. This really is a tax question, and you should be sure to speak to an accountant who understands small business tax issues.
Nina L. Kaufman, Esq. is an award-winning New York City attorney, edutainer and author. Under her Ask The Business Lawyer brand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and LexAppeal weekly ezine. She also writes the Making It Legal blog.