The Business Pre-launch Expenses That Are Deductible — And The Ones That Aren’t.
To get my complete article
with all the details…
Before your business opens its doors, you’re already spending money — on market research, legal fees, advertising, employee training, and more.
The IRS treats most of these as capital expenses that sit on the books with no immediate tax benefit. But a special provision lets you deduct up to $5,000 plus of start-up costs in your first year of business — if you know which expenses qualify and which don’t.
Get it wrong and costs you expected to deduct may have to be capitalized instead. Miss the timing rules and the deduction disappears entirely.