Music my husband and I have been incurring educational and coaching expenses for a new real estate probably new real business real estate business we will not earn any income this year so I'm assuming they're talking about the real estate business with like real person yeah so this is a real business as opposed to a fake one however we want to be able to deduct the expenses I understand we need to create a c-corp in order to do this and it will explain why you're probably hearing that is that a 195 is the startup expenses right my question is does the C Corp have to be set up in 2024 in order to carry forward the deductions to next year the answer is no or can we wait until 2024 to set up the C Corp and still apply the expenses from 2024 offset the 2024 income well here's how it works just because you just cuz you pay for something during a tax year does not make it applicable as a deduction in that particular year when it's a start-up expense what we're doing is anything that's in the investigation or the creation of your business is captured as a start-up expense it's actually a 26 USC 195 and what that allows you to do is go back in time and grab things that would have been deductible to the business had it been in existence but knowing that the business is not in existence we're getting it ready to go you're able to go back and grab those and then you can write off up to five thousand dollars in the first year of business but you amortize the rest over fifteen years unless it's over fifty thousand if it's over fifty then we're...
Award-winning PDF software
Video instructions and help with filling out and completing Which Form 1120 C Deduct
