"johnmolinda[at]yahoo.com" <johnmolinda[at]yahoo.com> wrote:

- quote -

The very fact that you started an s-corp and clearly don't
understand the distinction between it and you cries that you
seek out professional help ASAP.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"johnmolinda[at]yahoo.com" <johnmolinda[at]yahoo.com> wrote:

- quote -

The usual answer is "It Depends!" Some of these costs are
equipment (depreciation over varying lives and/or Section
179), organization costs (up to $5,000 can be written off up
front), and Startup Costs (another $5,000 up front). Excess
organization and startup costs are written off over 15
years.

- quote -

Maybe. If all you put into the S corporation is $15,000,
and the company borrowed the rest from banks or other
lenders, you can only deduct up to the $15K you put in. The
rest will have to wait until you put in more funds or the
company has profits. S corporation taxation issues are very
complex, so you had best work with a local CPA or EA
familiar with them. Whatever loss you can claim will
probably be ordinary.

- quote -

Wrong. Depreciation recapture (Section 1250 gain) is taxed
at 25%; the rest is taxed at 15%.

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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<johnmolinda[at]yahoo.com> wrote

- quote -

First off, those expenses, for the computer, furniture, etc
are fixed assets, and get depreciated, so you don't have a
loss on them yet.

- quote -

If you are able to take depreciation on the assets you
purchased, and you have a loss, it is an ordinary loss, that
flows through on Schedule E.

From the types of questions you are making, you should seek
competent tax help from a local CPA or EA.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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I just started a retail business (S-corp) in Jan 2005. So
far, I have personally spent $15,000 on getting the business
started. The $15k I spent so far has been for our computer
equpiment, furniture, and cosmetically repairing the retail
space. I estimate the business will have an operating loss
the first year of around $20k.

Can I deduct this total of $35k from my income taxes for
FY2005 and will this deduction be 'ordinary income' or
'capital loss' classification?

I own 3 investment houses I am selling next month (scheduled
to close in Feb). I held them for 7 years, so I assume I
will be charged a flat 15% long term cap gains tax on them.
Is there anyway to use the biz loss to wash some of the cap
gain tax?

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