Start Up Write Off

[Guest]

I read in the tax code somewhere that the first year you start a daycare you can write off up to $5000 in costs. Is this correct, and is it a 12 month year or just with in the year you started your business?

Example: I started in June 2011, can I still claim new flooring for the daycare room in Feb 2012?

[TomCopeland]

start up costs

There is an IRS rule about start up costs. It says that items you buy before you go into business may be deducted when you business begins. Items you buy after your business begins can always be deducted (if they are used in your business). So you can deduct your 2012 flooring on your 2012 tax return.

[Growing1atime]

Thanks Tom! I was confused by the wording I guess.

Looking forward to using your 2011 tax book.