Your Life

Your Life

Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.

Posts: 1
Registered: ‎02-04-2018

2017 Business Expenses for a Business starting in 2018

My wife attended training, achieved certifications, and purchased equipment in 2017 in order to start a fitness business in 2018.  She has not yet started the business, thus she doesn't yet have any income.


Can those business startup expenses be deducted on the 2018 taxes, when she starts earning income, or can they be put on our 2017 returns even though she hadn't yet started making any income yet in 2017?





Esteemed Neighbor
Posts: 221
Registered: ‎02-28-2016

Re: 2017 Business Expenses for a Business starting in 2018

You can't deduct business expenses on schedule C if you don't have income to report. Instead, you report your startup expenses in the first year you have income. The first $5000 of startup expenses can be taken as an expense deduction. If the amount of startup is more than $5000, some part can be taken as an expense in the first year and the rest is amortized over 15 years.