defender wrote:

- quote -

Education to meet the minimum requirements of a job is not
deductible (as a business expense).

- quote -

When you "open your doors" to the public.

- quote -

The latter of purchase or "placed in service" date.

- quote -

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In a nutshell:

Unemployed July 2004 and the prospects for reemployment in
my field were dismal at best. As a result I decided to
start working on a new business, new field, on the side
while searching for new employment in my field, in the event
reemployment in my field did not occur.

New business requires individual to be licensed and to be
licensed requires specific educational requirements. While
researching the business in August I took the required
training for the license.

By November research was completed and I created an LLC at
the end of November.

By December I was marketing the new business.

To this day I have never been able to reemploy in my prior field.

Questions:

1. The IRS publications were not clear as to education
deductions and there were inferences that the education
required to be licensed could be claimed as a business
start-up expense as it was required for the individuals
license. Can the education costs be claimed as a business
startup expense? Would they be placed on Schedule C as
other expenses? I know that if I were employed I could not
claim the education as it did not relate to my current
field. However I was unemployed at the time.

2. Prior to incorporation I did expend money for tools and
supplies specifically for use in the new business as well
as purchasing more after the incorporation process. Is
there a magical point that business startup expenses can
start being claimed? The IRS pubs indicate that licensing
fees and corporation research and filing fees can all
be deducted as startup expenses as well as any other
reasonable expenses. When is the line drawn for other
expenses?

3. Using my personal vehicles for business use also. They
were both purchased and paid off prior to July of last
year. When filling out the Sched C what do I use as the "In
Service" date? That was not clear either. Do I use
the date I started efforts for the business or do I use the
date of purchase?

Anyone have an insight into this I would appreciate the
assistance.

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