TP had about $1500 exps in 2010 w/no income but wants to file first Sch C for business in 2011. Dont ask why but am I correct that business exps in 2010 (that were not used in 2010) can be used on 2011?
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Generally, no. If the business started in 2010 then allowable 2010 deductions must recognized in 2010. -
Was the client business active yet ie were they "open for business" or were these perhaps start-up expenses incurred before opening the business?
If they weren't open for business yet expenses are probably start-up expenses and can be claimed as such in 2011.Comment
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a-Z, the MAIN question that must be answered is just when this business (or "bus"!) was open for business to it's clientele, whether that clientele be the general public or another select group of customers/clients?
Deductibility hinges on this fact.ChEAr$,
Harlan Lunsford, EA n LAComment
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