Business Start Up

[S T]

Taxpayer (Schedule C) started a small business in 2008, had income, and we used start up expenses under the expense election.

Now in 2009, taxpayer has done nothing more with the business- it is dormant, do I have to do anything with the start up expenses claimed in 2008 - such as claim as income?

Maybe just show no income in 2009 and hope that he does something with business in 2010.

I hate these

Sandy

[JG EA]

OK. This is an unscientific answer. But since we can take expenses when a business fails (TTB 8-19) would this not be in the same category? But I can see a problem between Sch C deduction and Sch D loss.

I have a client that is deciding if in or out of business. Idle or out. If out I'll convert the things that have to be converted into Sch C income through Part V 4797.

Maybe someone else has an opinion on the start up costs.

[BHoffman]

I'd leave it as still operating. Maybe they'll hit the jackpot in 2010, ya never know

[S T]

Thank you

As I said I hate these new "little" startups - get rich, make millions overnight businesses.

I had laid out all of the rules, yes everyone understood, and here we are a year later, "dormant" and the distinct possibility that they will not operate in 2010.

Who am I to judge, it is the taxpayers $$ down the drain lining the pockets of whomever the seminar promoter is. Actually the Taxpayer spent a lot more money than he received tax $$ relief from.

JG and B Hoffman thanks for your input - it at least will let me sleep tonight

Sandy