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Old 03-23-2009, 12:50 PM
 
11 posts, read 21,587 times
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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!
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Old 03-23-2009, 08:17 PM
 
Location: So Cal
90 posts, read 512,899 times
Reputation: 105
Get a CPA.
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Old 03-23-2009, 08:32 PM
 
Location: Inthewoods
113 posts, read 365,245 times
Reputation: 53
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.
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Old 03-27-2009, 01:59 AM
 
955 posts, read 2,005,058 times
Reputation: 401
Quote:
Originally Posted by moehonker View Post
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.
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Old 03-27-2009, 07:47 AM
 
Location: Virginia Beach, VA
5,517 posts, read 9,340,711 times
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Quote:
Originally Posted by moehonker View Post
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.
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