Question by Dan Bissell:
I'm moving my family from Alaska back to Southern Nevada in the latter part of June. We plan to begin anew with our own start-up business by buying and renovating bread and butter single family homes and multi-unit properties. I like the idea of purchasing directly from the sellers (FSBO) and foreclosures/REOs.
My question is this: If I don't have a business license at this time, but will have by mid-July, are the materials, resources, and tools I purchase between now and mid-July, for the business, going to be deductible to me as business expenses?
Answer By William Bronchick:
As soon as you are "in business," your business starts, even though you don't have a business license. All expenses that are "reasonable and necessary" to your business operations are deductible.
Disclaimer: The foregoing is not intended to be given as legal, financial or tax advice, but intended for instructional use only. If you require legal, financial or tax advice you should seek the assistance of a qualified professional.
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