Just what I needed. Crystal clear explanations with step by step instructions. And the tools to actually follow through with your instructions. Very powerful and actionable advice and guidance. I am going to subscribe to your channel and sign up for your course. Thank you for sharing your expertise. 👍🏾
Can you recommend a CPA? I need one. And by the way, you are the best when it comes to explaining, so nicely explained and right to the point. Thank you
Hello, Miss Amanda. This is Rickey Hughes again. I have just watched your most recent video about Deduction of Business Expenses Without Income. Although I have had this Bookkeeping and Accounting business, now, for 27 years, I have had no income, in this business, in 2019. To be honest with you, so far my business has not been too successful due to lack of clients. I would like to know from the video I have just watched, does this apply to me? Please let me know whether, or not, it does. Also, I would like some advice on how to operate my business in the right way, so I can resume getting clients for my business. Please let me hear from you again whenever possible. I think you would be of great encouragement to me about my business. I would more than appreciate it. I thank you for sharing this video, and do look forward to hearing from you again. Until then, take good care of yourself.
I am in my first year of real estate with no business income in 2019. In 2018, I have expenses from the classes I took. I am licensed and actively working my business, but it takes time to build. Also, I am still working my other business parttime so that I don't go broke. Can I deduct expenses from 2019 and 2018?
I have a question i should just watch the videos, but I make things I crochet covers and believe it or not I make money !! so my question is i started this is 2019 I have business cards, i advertise, I sell through paypal and I'm working to open my website, I do this by myself should I get a tax id number ?? I am making a profit and i didnt even file my taxes for 2019 because i have no idea where to begin. mind you I work fulltime outside the house ... so i dont know how to do my taxes.
Hey Amanda, thanks for the video. So just to make sure I understand: If I only had Organizational and Startup Costs in 2019 (i.e. the business is not "open"), then I should not deduct anything (?). Since I was not open in 2019, I guess I shouldn't even file taxes at all (the entity is an LLC taxed as a partnership).
Yes, people debate the partnership filing.. but if there's nothing to flow to partners (and there isn't because the business hasn't started), then you don't file a return (which is stated in the 1065 instructions). You got it right! Thanks for commenting!
@@businessfinancecoach again, great informative video. Quick question: Does inventory costs count as start up costs if I haven't received my inventory yet? My (online) store hasn't been officially open since my inventory was purchase in December 2019 and is still in transit. Am I correct with my reasoning? I am also in a LLC partnership - non US resident. Thanks for your reply!
@@businessfinancecoach Hi Amanda. I'm in the same boat as IBH One. Had a total of a little over 6k in startup & organizational costs combined but aren't officially open for business. I just want to confirm that we don't even file the 1065 for 2019 but than in 2020 when we officially "open" I'd still be able to deduct those costs even though they occurred in 2019 when completing the 2020 1065?? Devils advocate...what if we never open are we just never able to take those deductions of the 6k we spent to try to get up and running? Thank you!
Deciding to form an LLC, due to my specific needs and protection, I have just opened for business now in 2020, but spent the last year getting clients (which have paid invoices to just myself), secured rent at a location for the last 10 months to store materials and equipment needed for my business, and had start up & organizational costs. Of these, what can be written off on my taxes for 2019. I am assuming, only the start up and organizational costs, because last years clients were before my business start date, correct?
The spreadsheet used in this video has an error in it. Year 16 mths is only 9 but the amortization values are the same as for yrs 2-15 which were all calculated for 12 mths. If you only use 9 mths of amortization in yr 16 you'll get $50.04 in s/u costs and $39.96 in org costs for totals of $6,000.80 and $5,799.20 respectively. Rounding errors should be < 1 mth of calculated value. That said, while I understand only being able to deduct $49.24 in s/u costs yr 16 (total $6,000), can I round up and deduct $40.76 in org costs so I deduct the full $5,800 or am I limited to the calculated amortization of $39.96? I realize there's no significant difference between subtracting $41 and $40, but if the initial costs were bigger the difference would be bigger too.
I’m an inventor. I hired a lawyer to patent one of my inventions with the purpose of selling the product once it has been patented. Would those lawyer fees be start up costs or organizational costs?
Hi, if you have a general partnership and have start-up costs (licenses, registrations etc) and no income, do we have to fill out a schedule C for this loss?
Flip house- had expenses in 2019- sent out 1099’s but didn’t sell house until 2020. Do I need to file 1065? If so where do I enter/log my expenses- don’t really think I enter loss? Thanks for help
Job expenses aren't business expenses -- the question to ask is "am I spending this only because of my business?" if yes, that's a business expense. If no, you would incur that expense even if you weren't starting a business, then it's not a business expense
Can we take both the start up cost and organizational cost deductions.. I opened for business in April 2019. I spent well over 11k I understand I can only deduct 5k the first year is that for both or just the start up
so, you mean a rental property? that's a little bit different because it's passive income not a "business" like I'm talking about in this video. But, if it was available for rent and you just couldn't find a renter YES... or if it was a place you rented for your business and your business has already STARTED, YES too!
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Thx a lot, I learned its possible to start a business and if my income is 0 at my business i can deduct from my personal
income as an employee.
Just what I needed. Crystal clear explanations with step by step instructions. And the tools to actually follow through with your instructions. Very powerful and actionable advice and guidance. I am going to subscribe to your channel and sign up for your course. Thank you for sharing your expertise. 👍🏾
Can you recommend a CPA? I need one. And by the way, you are the best when it comes to explaining, so nicely explained and right to the point. Thank you
You're the one I was looking for, honestly you nailed me.
Thank you so much.
I love your videos. You are so explanatory with your explanations
Soooooo easy to follow. Wow! I've had these questions go unanswered for a long time. Thank you!
Ikr🤯
Excellent information! Very clearly explained - thank you!
Hello, Miss Amanda. This is Rickey Hughes again. I have just watched your most recent video about Deduction of Business Expenses Without Income. Although I have had this Bookkeeping and Accounting business, now, for 27 years, I have had no income, in this business, in 2019. To be honest with you, so far my business has not been too successful due to lack of clients. I would like to know from the video I have just watched, does this apply to me? Please let me know whether, or not, it does.
Also, I would like some advice on how to operate my business in the right way, so I can resume getting clients for my business. Please let me hear from you again whenever possible. I think you would be of great encouragement to me about my business. I would more than appreciate it. I thank you for sharing this video, and do look forward to hearing from you again. Until then, take good care of yourself.
I am in my first year of real estate with no business income in 2019. In 2018, I have expenses from the classes I took. I am licensed and actively working my business, but it takes time to build. Also, I am still working my other business parttime so that I don't go broke. Can I deduct expenses from 2019 and 2018?
As a man who’s been researching which kind of company to form for my budding author career
Great Teacher!!!
What is the link for your business school course?
If one has to pay organizational and start up costs from personal funds are such expenses deductible to the biz once it is set up correctly?
Thank you soo much I appreciate this video u Are a great teacher
I have a question i should just watch the videos, but I make things I crochet covers and believe it or not I make money !! so my question is i started this is 2019 I have business cards, i advertise, I sell through paypal and I'm working to open my website, I do this by myself should I get a tax id number ?? I am making a profit and i didnt even file my taxes for 2019 because i have no idea where to begin. mind you I work fulltime outside the house ... so i dont know how to do my taxes.
Hey Amanda, thanks for the video.
So just to make sure I understand: If I only had Organizational and Startup Costs in 2019 (i.e. the business is not "open"), then I should not deduct anything (?). Since I was not open in 2019, I guess I shouldn't even file taxes at all (the entity is an LLC taxed as a partnership).
Yes, that's generally correct.
Yes, people debate the partnership filing.. but if there's nothing to flow to partners (and there isn't because the business hasn't started), then you don't file a return (which is stated in the 1065 instructions). You got it right! Thanks for commenting!
@@businessfinancecoach again, great informative video. Quick question: Does inventory costs count as start up costs if I haven't received my inventory yet? My (online) store hasn't been officially open since my inventory was purchase in December 2019 and is still in transit. Am I correct with my reasoning? I am also in a LLC partnership - non US resident. Thanks for your reply!
@@businessfinancecoach Hi Amanda. I'm in the same boat as IBH One. Had a total of a little over 6k in startup & organizational costs combined but aren't officially open for business. I just want to confirm that we don't even file the 1065 for 2019 but than in 2020 when we officially "open" I'd still be able to deduct those costs even though they occurred in 2019 when completing the 2020 1065?? Devils advocate...what if we never open are we just never able to take those deductions of the 6k we spent to try to get up and running? Thank you!
Deciding to form an LLC, due to my specific needs and protection, I have just opened for business now in 2020, but spent the last year getting clients (which have paid invoices to just myself), secured rent at a location for the last 10 months to store materials and equipment needed for my business, and had start up & organizational costs. Of these, what can be written off on my taxes for 2019. I am assuming, only the start up and organizational costs, because last years clients were before my business start date, correct?
The spreadsheet used in this video has an error in it. Year 16 mths is only 9 but the amortization values are the same as for yrs 2-15 which were all calculated for 12 mths. If you only use 9 mths of amortization in yr 16 you'll get $50.04 in s/u costs and $39.96 in org costs for totals of $6,000.80 and $5,799.20 respectively. Rounding errors should be < 1 mth of calculated value.
That said, while I understand only being able to deduct $49.24 in s/u costs yr 16 (total $6,000), can I round up and deduct $40.76 in org costs so I deduct the full $5,800 or am I limited to the calculated amortization of $39.96? I realize there's no significant difference between subtracting $41 and $40, but if the initial costs were bigger the difference would be bigger too.
Hey. My question is not related to Tax. Im here to learn if does the startup cost go in Income stataement for the 1st year ?? Please assist.
I’m an inventor. I hired a lawyer to patent one of my inventions with the purpose of selling the product once it has been patented. Would those lawyer fees be start up costs or organizational costs?
That would be start up costs. Organizational costs are related to the organization - LLC or corporation.
can not download the spread sheet
Hi, if you have a general partnership and have start-up costs (licenses, registrations etc) and no income, do we have to fill out a schedule C for this loss?
If you worked a few months as an independent contractor, can any costs for tools and materials be deducted for that income?
Hmmmm....is equipment start up or organizational?
Flip house- had expenses in 2019- sent out 1099’s but didn’t sell house until 2020. Do I need to file 1065? If so where do I enter/log my expenses- don’t really think I enter loss?
Thanks for help
🙏
Sooo helpful!👍
So if I have an LLC can I write off expenses that I spend on my personal job that I'm still working while working on getting my business started?
Job expenses aren't business expenses -- the question to ask is "am I spending this only because of my business?" if yes, that's a business expense. If no, you would incur that expense even if you weren't starting a business, then it's not a business expense
Can we take both the start up cost and organizational cost deductions.. I opened for business in April 2019. I spent well over 11k I understand I can only deduct 5k the first year is that for both or just the start up
Is DBA an organizational cost?
Yes
? If you have a shop that used to rent but did not rent it out part of the year, can you record those months as a lose?
so, you mean a rental property? that's a little bit different because it's passive income not a "business" like I'm talking about in this video. But, if it was available for rent and you just couldn't find a renter YES... or if it was a place you rented for your business and your business has already STARTED, YES too!
Is this for Canadians also
Many rules might be similar but no my channel is for the US
Thank you for this advice. Does this apply to sole proprietorship? do I need a tax ID for the business?
every business, tax ID or not
DO YOU HAVE ANY VIDEOS ABOUT HOW WE WOULD TRANSFER PAYPAL THIRD PARTY TRANSACTION TO SOMONE ELSE IF THEY WERE USING ARE PAYPAL ACCOUNT THANKS
i like u lady!!!!
🤯🤯🤯🤯
Would be usefull iff You mention/separet info from USA RULES and common wordwide accountancy rules because I learn for Europe rules.