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Can expenses incurred this year, but no income from this enterprise, be carried over to next year when there will be income?
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<<Can expenses incurred this year, but no income from this enterprise, be carried over to next year when there will be income?>>

Generally speaking, no. As a tax basis taxpayer, you are required to report expenses when they are paid...not necessarily when you desire to report them.

But, on the other hand, if these expenses could be classified as "start up" expenses, they are then required to be capitalized and the expense amortized over a number of years.

You can read more about these issues in IRS Publications 535 and 583 at the IRS web site. If you are starting a business, these two publications are required reading for you in any event.

TMF Taxes
Roy
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I would recommend that you avoid capitizing your expenses.
ON some items you sort of get a choice.
The only way to do it is to finance the expenses. The expenses occur when you pay for them. Like on a Master Card. But I might be wrong so better read the rules.
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<<I would recommend that you avoid capitizing your expenses. >>

If they are truely "start up" expenses, they must be capitalized in order to receive the deduction. It's not an option.

<<The only way to do it is to finance the expenses. The expenses occur when you pay for them. Like on a Master Card. But I might be wrong so better read the rules.>>

Nope...expenses paid via credit card are considered deductible expenses in the year that the charge is made...NOT the year that the credit card is paid. No option on this one either.

TMF Taxes
Roy
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