How start-up costs of a new business affect your tax return

Description

Abstract: Despite a seemingly endless period of COVID-19 setbacks, last year the country experienced a large increase in new businesses launched. The latest figures available from the U.S. Census Bureau (June 2020 through June 2021) show that business applications rose 18.6%. Entrepreneurs often don’t know that many of the expenses incurred by start-ups can’t be currently deducted. This article discusses how the handling of initial expenses can affect a new business owner’s federal tax bill.