Ensure Your Start-up Business Qualifies for Deductions
Happy New Year and welcome back! This week, two recent cases illustrate the steps you can take to ensure your start-up business qualifies for deductions. Plus, the economy has been hard-hit by supply chain interruptions. The inability of manufacturers to get goods to market has had a significant impact on retailers. Read on:
Not long ago we wrote about a case involving the so-called “hobby loss” rules and how a taxpayer was able to demonstrate a profit motive and beat the IRS in Tax Court. Two recent cases highlight the importance of having, and following, a business plan in establishing that your fledgling business’s expenses should be deductible.
In addition to the medical and sociological implications of the COVID-19 pandemic, the economy has been hard-hit by supply chain interruptions. The inability of manufacturers to get goods to market has also had a significant impact on retailers. That truth was felt by any parent looking for the latest tech gadget or hot toy between Thanksgiving and Christmas.
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MPPM, CPA, Partner, Business Tax Leader
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