Started a business in late 2015 and had rent expense but not actually any activity yet. Still deduct the rent or is this an expense for 2016?
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Start Up Expense
If there was absolutely no activity then you have a start up expense. See TTB 8-18. -
It depends on what you mean by "activity".
If the business was 'open' and available to customers, the expenses (and startup expenses prior to opening) are deductions on the 2015 tax return.
If the business was not 'open' yet, the expenses are accumulated as Startup Costs and can be used (or amortized) whenever the business opens.Comment
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