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#1
11-22-2004, 01:39 AM
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 Re: Treatment of Pre-Opening Costs - S-Corp? - quote - > New Entity - Used Clothing Consignment business incorporated
Under the new tax law, I believe you can elect to deduct all> 9/27/04 in WA: > 1st Expense: 9/9/04 > S-Corp election: To be determined - 2553 not filed > 1st day open for business: 11/6/04 > 1st day rec'd revenue: 11/9/04 > 1st day Corp was funded: 11/8/04 > No Shares issued as of today. > Pre-Opening Costs: 9/9/04 - 11/8/04 > Advertising > Printing > 1st and Last Month's Rent > Security Dep. > Store Exp > Office Exp > Inventory > Furniture, Store Equipment, Etc. > Would this be correct, given the limited facts above? > 1: Effective election date for the S-Corp be 11/6, unless > you issue shares and backdate them no earlier than 9/27/04. > 2: Advertising, Printing, 1st Month's Rent, Store & Office > Exp be classified as IRCSec195(b) and starting date be > 11/9/04. > 3: Last Month's Rent, Security Deposit, and Inventory be > recorded as assets 11/9/04. > 4: Furniture, Store Equipment be placed in service 11/9/04. the startup and organizational costs if they don't exceed $5,000 apiece. Great simplification for small business startups. The effective date was 10/22, and your business operations began after that date. -- Thomas E Healy, CPA, PC 1650 38th St., Ste 202W Boulder, CO 80301 Please send email to: tom[at]tomhealycpa.com, since I block all email at my newsgroup address. phone (303) 443-1804 fax (720) 489-3772 << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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11-22-2004, 01:01 AM
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| Re: Treatment of Pre-Opening Costs - S-Corp? Ken B. Winger wrote: - quote - > New Entity - Used Clothing Consignment business incorporated 9/27/04 in WA:
Others will answer about how expenditures are treated,> 1st Expense: 9/9/04 > S-Corp election: To be determined - 2553 not filed > 1st day open for business: 11/6/04 > 1st day rec'd revenue: 11/9/04 > 1st day Corp was funded: 11/8/04 > No Shares issued as of today. > Pre-Opening Costs: 9/9/04 - 11/8/04 > Advertising > Printing > 1st and Last Month's Rent > Security Dep. > Store Exp > Office Exp > Inventory > Furniture, Store Equipment, Etc. > Would this be correct, given the limited facts above? > 1: Effective election date for the S-Corp be 11/6, unless > you issue shares and backdate them no earlier than 9/27/04. > 2: Advertising, Printing, 1st Month's Rent, Store & Office > Exp be classified as IRCSec195(b) and starting date be > 11/9/04. > 3: Last Month's Rent, Security Deposit, and Inventory be > recorded as assets 11/9/04. > 4: Furniture, Store Equipment be placed in service 11/9/04. but.... remember this. A corporation is not perfected until the stock is issued. IOW, IRS could ignore the corporate shell. In fact one of the questions on the sub S election form, form 2553, addresses this fact and asks: "date corporation first had shareholders." chEAr$, Harlan Lunsford, EA n LA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
11-18-2004, 01:35 AM
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| Treatment of Pre-Opening Costs - S-Corp? New Entity - Used Clothing Consignment business incorporated 9/27/04 in WA: 1st Expense: 9/9/04 S-Corp election: To be determined - 2553 not filed 1st day open for business: 11/6/04 1st day rec'd revenue: 11/9/04 1st day Corp was funded: 11/8/04 No Shares issued as of today. Pre-Opening Costs: 9/9/04 - 11/8/04 Advertising Printing 1st and Last Month's Rent Security Dep. Store Exp Office Exp Inventory Furniture, Store Equipment, Etc. Would this be correct, given the limited facts above? 1: Effective election date for the S-Corp be 11/6, unless you issue shares and backdate them no earlier than 9/27/04. 2: Advertising, Printing, 1st Month's Rent, Store & Office Exp be classified as IRCSec195(b) and starting date be 11/9/04. 3: Last Month's Rent, Security Deposit, and Inventory be recorded as assets 11/9/04. 4: Furniture, Store Equipment be placed in service 11/9/04. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| costs, preopening, scorp, treatment |
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