Home Business?

[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?

[crazy connie]

You might want to ask at fairmark.com which is a CPA/Tax board.

[saluki9]

Quote:

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.