New business started in 2012 with roughly $9K of start up exps remodeling the leased commercial space tenant aka business had to pay for. How would that be entered in QB and would any of that be considered start-up and/or org fees for the $5K deduction?
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1. As to your Quickbooks(r) question, others have more experience than I. Because IRS always asks for a QB data file during audits, I advise my clients not to use QB. I [presume QB has a way to enter assets for depreciation,Originally posted by AZ-Tax View Post
2. This appears to be an RTFM issue.
3. AS to your leasehold improvements question, may want to look at The Tax Book pp. 9-18. Remodeling to me includes things beyond a cleaning and coat or two of paint which I would be inclined to take as ordinary expense. Remodling expenses in your example appear to be leasehold expenses subject to 15 year depreciation.
4. Start up costs: The Tax Book (r), pp. 8-17-18 to me clearly indicates that leasehold improvements/remodeling expenes are NOT start up costs. Others may have a more creative viewpoint. TTB has examples of organizational costs at pp. 18-21, 19-15 & 20-16. A worksheet is found at p. 24-10.
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