Originally Posted by Bimmerbill
With the new year starting I was thinking of starting a home business. The DW wants to plant sunflowers and sell the heads to all of the local arts and crafts stores.
Can I deduct full start up costs from my 2007 taxes? Or do I need to amortize them? Or can I only deduct as much as I earn in the business?
The law was changed in 2004
Now startup costs can be expensed up to $5,000 in the first year. The balance has to be amortized over not LESS than 180 months.
See code Sec 195(b) for more info.