Message Font: Serif | Sans-Serif
No. of Recommendations: 1
<<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
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.