Case: Website Development Business Start Date Determined to Allow Current Year Schedule C Deduction (TC Memo) (IRC §162) – Bloomberg Tax

June 14, 2022, 5:00 AM

Costs of developing a business information website deductible as current expense and ratable as start-up expense as delineated by the business start date, the U.S. Tax Court held in a memorandum opinion. Taxpayer created a web-based business providing financial information. He worked out of his home at night while being fully employed. Taxpayer used engineers to create the website and fix any bugs. The website’s functionality was completed in 2015 but the business didn’t make money until 2019. Taxpayer deducted on his Schedule C payments to the engineers, a marketing adviser, and phone service. The IRS disallowed the deductions. Expenses …

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