In this enlightening episode of ‘Dr. Friday Tax Tips – One Minute Moment,’ Dr. Friday, president of Dr. Friday’s Tax and Financial Firm, delves into the often-overlooked aspect of tax deductions for small business startups. She emphasizes that expenses incurred in the early stages of planning and setting up a business, such as purchasing educational materials and books, are eligible for tax deductions. These preparatory expenses, even if they occurred years before the actual business launch, are considered part of the startup process. Dr. Friday cautions, however, that this doesn’t apply to hobbies or unsuccessful business ventures. This crucial advice is aimed at ensuring entrepreneurs don’t miss out on valuable tax deductions during the formative phase of their business.
Transcript
G’day. I’m Dr. Friday president of Dr. Friday’s Tax and Financial Firm. To get more info go to www.drfriday.com. This is a one-minute moment.
Did you know that credit for a small business startup doesn’t mean you had to spend all the money in the year you’re talking about. So if you started a business but maybe you started thinking about the business two years ago and maybe you went ahead and set up some different education, you brought books, you did things, that’s all considered startup. So when you’re actually starting a business you want to be thinking about now if it’s a hobby or it’s a business that never happened and never go off the ground, that’s not a tax deduction guys. Just because you made the mistake for the wrong that’s one thing but if you’ve been working a year or two to open a business that can be a tax deduction. Don’t leave any tax deductions on the table.
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