I do not intend to start driving until the spring of '08, but I'd like to start getting all my ducks in order starting after the first of Jan, 07.
My question is this:
Items that I'm buying for what will *become* a business, and are legitimate expenses solely for that business: can they be written off in the '07 taxes?
Thanks!
The answer is yes, it will have to be listed as startup expenses as long as they are capital expenses. the only Capital expense in Trucking is the Cost of the Truck itself, So If you do not plan on purchasing the truck in 07, I suggest putting it off until 08 when you plan on making income on the business.
You can make a Schedule C, Profit/Loss from business or Profession, if you have no income it will show a loss for the 1st year, and you can expense most of it. if they are items of $100.00 or more they must be depreciated. If you want to take the cost of all the items in 07 expense the whole amount of them they are lost to you for 08.and future years, if you depreciate them on Macros, and not 179 then you will recieve a portion for 07 and 08 when you start up.
It is not recommended that you do either, best to do in buy in 2008 and put in service in 2008
if you have any other questions please do not hesitate to ask, you can contact me at the following besides on this site.
Franklin Katz, ATP
Frank's tax and business service
704-739-4039
or e-mail me Direct at
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