Can I claim this for a business expense?
In January of next year a friend of mine and I are going to start a business. We haven't yet applied for out licensing or officially started our business and plan to take care of that within the next few months.
Here is the thing: my friend that I am going into business with lives in another state and I take monthly trips to go over our business plan. Since we haven't yet started out business, can I save the gas receipts for these trips and claim them as a business expense at the end of this year? I also am interested in starting to buy office equipment and supplies, can I also claim that if I haven't yet started my business?
Thanks for any help
perfect timing for me to be reading this--I teach this stuff in college and on the net!
a; make SURE you are doing [now] extensive market research to confirm, at a minimum,
an UNMET need for your product/service [both?]
b; write a biz plan
c; compare A and B with your own passions. If you are not injecting passion[s] into this biz
idea, do not continue!
if you are--
as of the moment you starting doing research, you had a biz started, called a R and D
biz, or research and development company! ABSOLUTELY, keep all receipts and
when you start the actual company that is your focus, --when you reach a net profit [between
immediately and 3-5 yrs out]--the net profits disappear [huge tax advantage for you]
since you may deduct the R and D expenses from the OPEN to the pubic business-
thus, not having any taxes due based on net profit.
DO NOT buy any equipment yet......
get back to me.