I have a client who was entering a business, go through most of the liscencing process, did some business for friends while getting their liscence, and has decided they don't want to be in this business.
His question to me, does he need to finish the liscencing process to deduct the losses. And how would the capital assets, no profit, thing work?
I'm thinking that if he has accurate records and can show that he was serious about making this a profitable business, he's ok without completing the liscencing process, but that may be needed to prove that he was in this for profit?????
We're talking a business loss of about $3,0000. Any advice?
His question to me, does he need to finish the liscencing process to deduct the losses. And how would the capital assets, no profit, thing work?
I'm thinking that if he has accurate records and can show that he was serious about making this a profitable business, he's ok without completing the liscencing process, but that may be needed to prove that he was in this for profit?????
We're talking a business loss of about $3,0000. Any advice?