Purchase Real Estate for Business

[tracyb]

If real estate with a building was purchased and remodeled in 2005 for a business started in 2006, for tax purposes, how would this be handled? The business actually started operating Jan/2006.

[abby]

In Service Date

The In Service date to start depreciation on the builidng and the remodel will be the day they are open for business.

[Unregistered]

If real estate with a building was purchased and remodeled in 2005 for a business started in 2006, for tax purposes, how would this be handled? The business actually started operating Jan/2006.

How was the business structured - LLC, Scorp etc. You still need to FILE zero tax return by the due date.

Next, do not forget all startup expenses that you have incurred up to start date of business. You need to follow the rule of what I call - "The golden triangle". $5000, $5000, & amortization.