Business started and terminated same year...

[AZ-Tax]

how would you handle a husband and wife that started a business in 2007 and most start up expenses ($60K) were paid for prior to date of opening up for business in 2007. Couple terminated the business in 2007. So the business started and terminated in the same year.

I was planning on using a Schedule C deducting all expenses (no section 195 amortizing etc). Your thoughts?

[ChEAr$]

First thing I would do

how would you handle a husband and wife that started a business in 2007 and most start up expenses ($60K) were paid for prior to date of opening up for business in 2007. Couple terminated the business in 2007. So the business started and terminated in the same year.

I was planning on using a Schedule C deducting all expenses (no section 195 amortizing etc). Your thoughts?

is get a list of these "startup" costs, for it might just contain some items which were
investigatory expenses and not deductible. Only costs after the decision has been made
are eligible to be classified as startup costs.
Also insist on documentation as to payment of said expenditures.

I'm NOT saying that they're all legitimate, but.... well... youknow.

[JG EA]

See TTB 8-18. Failed business - capital loss. But do as advised and make sure all are really deductible.