How to Amortize LLC Startup Expenses?
I understand that the property improvement costs must be amortized, but I am having a bit of trouble deciding about how to handle the supplies (dog food, collars & leashes, training books, professional certifications, dog beds, crates, toys, etc.) because the wife had been operating a pet-sitting business from home up to the day they opened the day care/boarding/training facility. She had similar or identical expenses for that business for 2013 and for the first few months of 2014. It is difficult to say for certain which expenses were related to the operation of her current business and which were purchased in preparation for the new business.
One problem (in my mind) is that she had previously been operating as a sole proprietor, then upon deciding to expand her current business to provide additional services for more clients, her husband decided to join her and they formed an LLC.
I’m hoping someone can offer their thoughts and/or suggestions about how to go about determining which expenses to amortize on the 1065, and which to deduct on her final Schedule C. Any advice is appreciated. Thanks!!
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