Are Start-Up Costs Tax Deductible? | Ask a CPA

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Are Start-Up Costs Tax Deductible? | Ask a CPA

Today’s question comes from Lily in Santa Rosa Beach Florida.

“I’m starting a business and have lots of expenses. Can I just take a loss for these on my taxes?”

Thanks for the question, Lily…

Most businesses will incur some expenses before operations have officially begun…these expenses are known as start-up costs. Start-up costs can include legal fees, business licenses, business plan preparation, borrowing fees, training, and travel to name a few.

Thanks for watching!

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What about equipment costs? Can they be written off aswell?

BrittaneyBoss
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What if your start up costs exceed your income the first year you are in business? Can you still claim the start up costs? (this is a sole proprietor, photography business).

marieschaller