A business may deduct start-up costs once they begin operations. But it can’t deduct ordinary and necessary business expenses (e.g., salaries) while still in the start-up phase. An inventor who was developing a product but hadn’t brought anything to market was denied deductions by an appellate court. While he took significant steps to prepare for the business of selling his invention, he had not yet attempted to market or sell a product, made any sales, or even made a website public. #IdeaoftheDay
Barbara Weltman
Big Ideas for Small Business, Inc.
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BOI reporting cont'd. But this isn’t the end of the story. The government filed a notice of appeal with the appellate court, and FinCEN says “deadline stay—voluntary submission only” (https://bit.ly/3ZpKxwU Note: There are cases challenging CTA that are still pending.