Business Start Up Expenses

[S T]

I have a married filing joint taxpayer.

Husband opened a new business (his) in 2008 and has start up expenses.

Wife opened a new business (hers) in 2008 and has start up expenses.

Is the $5,000 start up deduction election per return for married filing joint or is it per business?

Any amount over the $5,000 would then be amortized over 180 months, correct?

And the business had to have "opened" in 2008, even though it might not have generated any income?

What happens if the business doesn't generate any income in the future, is there a recapture on the $5,000 of start up expense?

I am way too confused on this one.

Thanks,

Sandy

[erchess]

Opinions

1. It is 5 K per business and I am not aware of any limit on the number of businesses someone can simultaneously start up and run. I think it is a facts and circumstances issue and I am sure the IRS would exercise what they considered to be common sense. There is certainly nothing too unusual about husband and wife each opening a business in a given year any more than it is unusual for them to both finish school and get first real jobs or reach retirement age and retire in the same year.

2. The amortization of the rest gets shown separately for each business. One obvious reason for this is so that if one business closes and you claim the rest of the expenses in the year of closure the other businesses are still clearly shown as unaffected.

3. Amortized I don't recall over how long but that will be in the book.

4. Yes a business can have opened but not generated income. It is enough that the business have begun the attempt to generate revenue.

[S T]

Thanks

Thanks Erchess,
I woke up this morning thinking about this issue, and everything that you outlined makes perfect sense.
I believe, my brain was just "mush" last night and this taxpayer had way too many issues.

Sandy