Business expense tax ? (business credit, debt, CPA, 2009)

[moehonker]

Say one started a business (2008) and put all the costs ($20k) on a business credit card deferring the business expenses incurred in 2008 (other than monthly payments). No write offs were claimed in 2008 for any of these expenses since there was no income to write off against.

If the business credit card debt from 2008 were to be paid off in 2009 ($20k), could that $20k be used as a business write off in 2009?
TIA!

[socal2009]

Get a CPA.

[TXCountryBoy]

CPA will hlep you do what is best. Get a good, Interview and make sure you both are on the same page. It will help you and save you tons down the road. I know it is hard but take the time now and find that someone.

[UpperPeninsulaRon]

Originally Posted by moehonker

Say one started a business (2008) and put all the costs ($20k) on a business credit card deferring the business expenses incurred in 2008 (other than monthly payments). No write offs were claimed in 2008 for any of these expenses since there was no income to write off against.

If the business credit card debt from 2008 were to be paid off in 2009 ($20k), could that $20k be used as a business write off in 2009?
TIA!

Lots of questions. What kind of costs? Are some long term costs that should be depreciated? Do you understand the basic concepts of matching revenue and expenses in the period? Are you on a cash or accrual basis?

I'm not being cute here. You really should not be starting a business with receipts in a shoebox. See a CPA or Certified Bookkeeper.

[Randomdude]

Originally Posted by moehonker

Say one started a business (2008) and put all the costs ($20k) on a business credit card deferring the business expenses incurred in 2008 (other than monthly payments). No write offs were claimed in 2008 for any of these expenses since there was no income to write off against.

If the business credit card debt from 2008 were to be paid off in 2009 ($20k), could that $20k be used as a business write off in 2009?
TIA!

That depends largely on your accounting system, and what the purchases are.

If they are actual expenses, and not assets, and you are on a "cash basis", you actually arent "deferring" anything.

If you are on an accrual basis, then those charges will become payables and the expenses will hit when you made the purchases.