Article Date:
July 2011


Word Count:
484

 

 

Tax Breaks Start When Business or Rental Activity Starts


You are in business when your business functions as a going concern, engaged in activities you organized it for.1 In general, this means that you

 

1.

qualify to be in the business;

2.

intend to make a profit;

3.

regularly and actively work at the business; and

4.

have made your first sales calls.2

 

The business must begin for you to depreciate your assets and write off your start-up expenses.

 

Example: L. D. Daily bought equipment and incurred expenses to start a videotaping business, but the business never started. ... Log in to view full article.

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