Publication 225 |
2000 Tax Year |
Going Into Business
When you go into business, treat all costs you incur to get your
business started as capital expenses. Capital expenses are a part of
your basis in the business. Generally, you recover costs for
particular assets through depreciation deductions. However, you
generally cannot recover other costs until you sell the business or
otherwise go out of business.
Business start-up costs.
Start-up costs are costs for setting up an active trade or business
or investigating the creation or acquisition of an active trade or
business. Start-up costs include any amounts paid or incurred in
connection with any activity engaged in for profit and for the
production of income before the trade or business begins, in
anticipation of the activity becoming an active trade or business.
For more information, see Going Into Business in chapter 9 of Publication 535.
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