On Mar 10, 3:00 pm, Mike20878 <mro...[at]gmail.com> wrote:
- quote -


Thank you all for your answers. To clarify, we did not really
open for business in 2007 and did not have any income.

I have a couple of follow-up questions:

1. I understand that because we did not technically open for business
in 2007, we can't deduct the operating costs. But it seems like we
could
deduct the costs of registering for an LLC.

How do we make an election to deduct these costs?


2. Another option we are considering is to not take any deductions for
2007 at all and fill in all zeros in Form 1065. Submitting the form
with all zeros is just to show IRS that we did start the business
but did not have any income.

This would really simplify this year's taxes.

Could we then include both the types of costs (start-up costs like
registration and legal fees + initial operating/capital costs) in our
2008 tax returns? I am reasonably certain about the latter but not
about the former.

Any suggestions?

Thanks again for all your help.

Regards,
- Harshal

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On Mar 10, 2:56*pm, "removeps-gro...[at]yahoo.com" <removeps-
gro...[at]yahoo.com> wrote:
- quote -

But you have to make an election to be able to do so.

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<removeps-groups[at]yahoo.com> wrote
- quote -






If the OP and his partner probably haven't started their business yet....(no
income was generated). They can't take "start-up" expenses because they
haven't yet started their business.





--
Paul A. Thomas, CPA
Athens, Georgia

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On Mar 10, 10:42 am, Benjamin Yazersky CPA <bya...[at]lycos.com> wrote:

- quote -

You can deduct $5,000 in startup costs.

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On Mar 10, 1:16 pm, "hars...[at]gmail.com" <hars...[at]gmail.com> wrote:
- quote -

startup expenses have to be amortized & not currently deductible

whether or not it is passive depends on various factors including your
activity in the business & the type of business



<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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Hello,

A friend and I registered an LLC (as equal partners) in August 2007
in
Texas. We spent about $1000 (split equally between us) in registration
and other start up costs etc. We didn't have any income in 2007.

We had selected Jan-Dec as the accounting year for the LLC.

I would like to confirm that I can put my share of the expenses (about
$500)
as 'non passive loss' on line 28, column 'h' of Schedule E. That
column
expects the information to come from Schedule K-1 which requires us
to file Form 1065. The only applicable parts of 1065 seem to be page
1,
Schedule B (with 'No' for all the questions) and Schedule K-1. Am I
missing
anything?

Do we need to do anything else for the federal taxes?

Thanks for any guidance you can provide.

Regards,
- Harshal

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >