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    New Business - Antiques

    Client incurred expenses before the business was actually started. Buying antiques over a period of time and needing a place to store them for awhile. Had rent, heat, lights expense. Started incurring in 2014-15 and actually started the business in 2016. Would these be set-up expenses and how would you deduct them? Years?

    #2
    Yes and no

    The purchases of items for sale go into inventory. The other expenses are start up expenses. See TTB page 8-18 about start up costs.

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      #3
      Years of Depreciation?

      Originally posted by Kram BergGold View Post
      The purchases of items for sale go into inventory. The other expenses are start up expenses. See TTB page 8-18 about start up costs.
      How many years are start up costs depreciated over?

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        #4
        Originally posted by zeros View Post
        How many years are start up costs depreciated over?
        Take a look at IRC §195

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          #5
          Got The Answer

          $5000.00 maximum over 15 years.

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            #6
            Is that right? I thought you could immediately expense up to $5,000 if you qualify and amortize the excess over 180 months.

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              #7
              Originally posted by Lion View Post
              Is that right? I thought you could immediately expense up to $5,000 if you qualify and amortize the excess over 180 months.
              Gee, Lion - you must have actually read §195(b)(1).

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                #8
                I read. But, I don't trust my memory!

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