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    3 Replies Latest reply on Mar 17, 2008 1:39 PM by dublincpa

    Can I Deduct Business Costs from 2007 on a 2008 Tax Return?

    Consultant442 Newbie
      I started a consulting business on January 7, 2008. I bought 2 plane tickets and incurred travel expenses in 2007 when trying to set up the consulting contract for 2008. I also incurred moving costs at the end of 2007 associated with moving out of state to start my new business. The total business start-up costs were around $5000. I didn't earn any money with the new business in 2007. I also did not register the new company as an LLC until until 2008.

      1. Can I deduct the moving costs, travel expenses and other business start-up expenses from 2007 on my 2008 return?

      2. If I have to show them on my 2007 return, will this trigger an audit because my business did not make any money in 2007?

      Thank you!