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!!
Tax Professional Answers
Tax Questions By Topic:
Meet Leading Tax Advisors
Lakeland, Florida, USA
New York, New York, USA
Federal Tax Credits & Incentives Practice Leader
Denver, Colorado, USA
Fullerton, California, USA
Sanford, Florida, USA
Topanga, California, USA
Tyrone , Pennsylvania, USA
Rancho Santa Fe, California, USA
CEO/Certified Financial Advisor
Greenville, South Carolina, USA
Santa Clara, California, USA
Tax Principal - President
Chattanooga, Tennessee, USA
Stellenbosch, South Africa
Exchange Control & Master Tax Practitioner (SA)
Boston, Massachusetts, USA
Tax Partner, International Tax
Senior Tax Manager
Toronto Mississauga Oakville Burlington Hamilton, Canada