Do I HAVE To Claim This Year’s Business Expenses??

[LaLa1923]

I officially open January 1st but I've purchased a few things for the daycare. Do I have to file taxes this year for that stuff or can I include it next year? (since i haven't had an income)

[Crazy In Mo]

I'm not an expert but I think it has to be claimed this year.

[TomCopeland]

Claiming business expenses

I officially open January 1st but I've purchased a few things for the daycare. Do I have to file taxes this year for that stuff or can I include it next year? (since i haven't had an income)

You can only claim business expenses if your business has begun. Your business has begun when you are ready to care for children and telling others that you are open for business. So, if you don't meet this test, you can't claim these 2012 deductions this year, but you can claim them in 2013 when your business begins.

If you were looking to care for children in 2012, but didn't enroll anyone, you can claim these expenses in 2012 because your business had begun.

[Abigail]

I was in the same position. I opened last January but was buying things all year to help prepare and am going to claim everything for start up expenses this tax season!