New LLC - Startup Deductions

[PortlandDMA]

What is the name of your state? Oregon

I started a LLC recently. I'm in the process of getting all my startup equipment. This is a home based business. Can anyone provide a resource of startup expenses that are deductible? IE - Office furniture, tools, filing systems, computers, legal fees, advertising, etc?

Thanks in advance,
Dominic

 

[LdiJ]

What is the name of your state? Oregon

I started a LLC recently. I'm in the process of getting all my startup equipment. This is a home based business. Can anyone provide a resource of startup expenses that are deductible? IE - Office furniture, tools, filing systems, computers, legal fees, advertising, etc?

Thanks in advance,
Dominic

Any physical assets will likely have to be depreciated, unless you have enough income during the year to allow you to 179 expense them.

Legal fees for start up costs generally have to be amortized.

Advertising and supplies would be ordinary deductible expenses.

 

[PortlandDMA]

Any physical assets will likely have to be depreciated, unless you have enough income during the year to allow you to 179 expense them.

Legal fees for start up costs generally have to be amortized.

Advertising and supplies would be ordinary deductible expenses.

I'll be working full time outside of my business for at least the first year. I'm not sure exactly though how my income during the year would determine if I use 179 or not though? Can you expand...?

Is it legal to 179 items, such as for example, a computer and after the third year donate it using the donation as a charity write off and turn around and do it over again every three years?

 

[LdiJ]

I'll be working full time outside of my business for at least the first year. I'm not sure exactly though how my income during the year would determine if I use 179 or not though? Can you expand...?

Is it legal to 179 items, such as for example, a computer and after the third year donate it using the donation as a charity write off and turn around and do it over again every three years?

Ok..on a simplistic level you can 179 expense asset purchases if expensing them doesn't put you in a loss.

So..if you have 10k in income, and after ordinary expenses its 7k, but you purchased business assets of 5k that year, generally you can 179 expense them. However, if your income after ordinary expenses was 1k, and your asset purchases were 5k, you are going to be limited.

I am not even going to address your charitable donation scenario....I am a volunteer here...I don't go that route for free...particularly during the tax season.

 

[PortlandDMA]

Understandable, thanks for the excellent advise.