17 Oct
2007
17 Oct
'07
4:18 p.m.
Grant,
When I was a sole proprietor of a similar business, I was told that the
business had to make money at least once in every three years for the
losses to be deducible from ordinary income. If you are going to treat
this project as a business, you should be able to claim your development
costs (what you are doing now) as a loss. All accounting must be on a
cash basis which means you cannot accrue these losses and use them to
offset future income (when that might help reduce profits).
No, I'm not "qualified" to give this advice, just experienced.
As a suggestion, if you used Turbo Tax last year, open it up and look in
the tax advice for information on your situation. That should be a good
as any other free advice.
Jim
Roy J. Tellason wrote:
On Tuesday 16 October 2007 13:20, Tim Shoppa wrote:
There are some potentially onerous taxes
associated with
stocking large quanties of parts/assemblies/computers that
might be of value to your business, depending on how your
locality figures inventory taxes. Sitting on inventory more
than a year or two can be incredibly costly if your jurisdiction
has inventory taxes.
I think it was Don Lancaster that wrote once about how Santa Fe, NM (?) tried
to consider a writer's unsold works to be "inventory"...!