Business Expenses

[pickleweed]

I already started purchasing some things that I need for my business, but I have not registered it yet. I am going to register for a DBA in a couple of days. I am a designer basically working out of my home studio. Will I be able to write them off as business expenses even if I made purchases before the DBA is officially registered? I've kinda asked around and no one seems to really know.

Thanks!

Shi

[pboychuk]

All a DBA is, is a substitute for using your name as the name of the business, So, you may still need to get a business license of some sort. However, I see no reason why you cant write those off as business expenses.

[buyitused]

depends on what state you are located in, but the DBA is more or less only to reserve your operating name. you'll just classify yourself as a sole proprieter on your tax return.

[Ultimatum Dynamics]

In most jurisdictions, no. You cannot make write offs in retrospect. Particularly before the business is registered. If it were allowed you would see people who were in a pinch for money trying to write off a car they bought 20 years ago that they used to make delivery's or collect supplies.

The IRS will look at it and think it's ludicrous.

[posylane]

If it were allowed you would see people who were in a pinch for money trying to write off a car they bought 20 years ago that they used to make delivery's or collect supplies.

That is a little misleading. Yes, if you incured expenses before getting the offical DBA, you will be able to write them off. Use your accountant or do some research but it's not a problem. The car example is just silly.

[rogercbryan]

You do not have to be registered to write off business expenses. As a sole proprietor you will use your SSN to file you business taxes. Because you will use your SSN you do not need any type of 'registration' to file business write offs.

As long as they are in the same tax year you will have no problem. If they are in a previous year you will need to amend that years taxes. If you are thinking about trying to write off a large amount of money from a previous year be prepared to be audited. If you are only going to write off a small portion of your income (10% or less) in your current and you have legitimate recepits... you'll have no problem...

In most jurisdictions, no. You cannot make write offs in retrospect. Particularly before the business is registered. If it were allowed you would see people who were in a pinch for money trying to write off a car they bought 20 years ago that they used to make delivery's or collect supplies.

The IRS will look at it and think it's ludicrous.

Just a question.. have you ever written off business expenses on your tax return... I ask this because your advice is so off base... I think you are speaking from opinion and not experience.

depends on what state you are located in, but the DBA is more or less only to reserve your operating name. you'll just classify yourself as a sole proprietor on your tax return.

Semi-decent advice.. the tax question is not a matter of jurisdiction. Your advice on what a DBA is... is accurate

[SerialEntrepreneurs.]

you should be able to write them off - just save all your invoices/receipts....

[Ultimatum Dynamics]

Just a question.. have you ever written off business expenses on your tax return... I ask this because your advice is so off base... I think you are speaking from opinion and not experience.

Yes I have, Do you understand what he is asking? He does not have a business, it does not legally exist. Yet he wants to associate costs he has incurred with it. For that to happen it has to exist.

I suppose the correct answer to the original question is you should have a talk with a tax attorney in your area. Trusting internet advice is beyond sketchy.