This will be helpful for Tyler, I think.
AwesomeâŠthanks very much Lanky! This is an interesting suggestion. As a sole proprietor, I wouldnât need any licensing with the state or county at all (Iâve researched the WA Business Licensing site), so this could fly. Iâve read through the link you sent but need to take another pass.
If I understand correctly, these business expenses would need to be listed on Schedule CâŠthey are currently on my Schedule A. So I may need to upgrade the TT product to the Small Business one.
Again, thanks very much to you and Beans!
Edit: pulled the trigger too soon on this post since I thought they needed to be filed on Schedule E. Corrected.
I was right. I knew it was that straight forward.
They still arenât business expenses. They are capital losses, which mean a 3k limit.
from the link [i]What if you donât start the business? If you ultimately decide not to go into business, what happens to your costs? The portion of costs you paid to generally investigate the possibilities of going into business at all, or to purchase a non-specific existing business, are considered personal costs and are not deductible.
However, the total costs that you paid in your attempt to start or purchase a specific business would be considered a capital expense and you can claim it as a capital loss, subject to all the rules that apply to a nonbusiness capital loss.[/i]
So because we didnât actually start the business in 2014, these would be considered a capital loss that would be captured on Schedule D?
[quote]Tyler23 wrote:
So because we didnât actually start the business in 2014, these would be considered a capital loss that would be captured on Schedule D? [/quote]
yes.
Fellow accountants, I have a little news. I am running for local office. Tax Assessor/Collector. So far it has been quite the experience. Just thought I would share.
[quote]jbpick86 wrote:
Fellow accountants, I have a little news. I am running for local office. Tax Assessor/Collector. So far it has been quite the experience. Just thought I would share.[/quote]
Youâve sold your soul⊠My god.
Next youâll tell me you joined the illuminati.
[quote]countingbeans wrote:
[quote]jbpick86 wrote:
Fellow accountants, I have a little news. I am running for local office. Tax Assessor/Collector. So far it has been quite the experience. Just thought I would share.[/quote]
Youâve sold your soul⊠My god.
Next youâll tell me you joined the illuminati.
[/quote]
Or the Democratic partyâŠ
Zing!!
[quote]countingbeans wrote:
[quote]Tyler23 wrote:
So because we didnât actually start the business in 2014, these would be considered a capital loss that would be captured on Schedule D? [/quote]
yes. [/quote]
Thanks Beans. Now I have to figure out where on Sch D to capture this. Everything refers to the sale of stocks/bonds/etc (and forms 1099, 9849, etc.). It appears that I need to flag this as a nonbusiness capital loss.
[quote]countingbeans wrote:
[quote]jbpick86 wrote:
Fellow accountants, I have a little news. I am running for local office. Tax Assessor/Collector. So far it has been quite the experience. Just thought I would share.[/quote]
Youâve sold your soul⊠My god.
Next youâll tell me you joined the illuminati.
[/quote]
I actually found out who really killed Kennedy. Not really that surprising actually.
Seriously though, the more I deal with this the more I am thinking this may be one of those bucket list things most people should try. You get the chance to meet a lot of new people and make some great connections, win or lose. Plus, you are essentially experiencing the system from the inside out. Hasnât been all roses though as some people I thought were pretty close friends are campaigning against me but I expected something like that.
Enter it as a short term capital loss, donât worry about tagging it as nonbusiness. Tell the software (should be a check box or something like it) it is a transaction that is not reported on a 1099-b and basis is not reported to the IRS.
Oops fucked this up. This is for Tyler23
Thanks Yonkey.
I entered two line items, both as short term losses, with a cost basis of $870 (Atty) & $200 (CPA) and Sale Proceeds of $0. Theyâre now showing on Schedule D with details listed on Form 8949. Description I put on 8949 is âAtty fees for exploring new business purchase that didnât go throughâ.
Ended up saving $60 moving them here from Schedule A. 
Iâve got all my expenses calculated, just waiting on my 1099s, K-1s, etc. This might be the first time in 20 years I get my taxes sent in by 4/15.
1 Like
How did it go? Did you get elected?
Powerlifting accountant checking in. Getting a meet in next week before busy season officially starts - I travel to my first audit client of the season the very next morning. Last year I traveled to a client and stayed in the same hotel as Eddie Coan. Accounting perks.
2 Likes
Graduating in May with my Masters of Science in Accounting. I have already accepted a job in Audit with Deloitte. Just thought I would share because when I was still in undergrad I asked questions in this thread regarding interviewing for internships. I have come a long way.
2 Likes
UK accountant stopping by. Got my final exam results the other day and am now an ACCA affiliate. I should be able to get my membership completed in the next few months.
1 Like
Thought Iâd resurrect this old thread instead of starting a new one.
Iâm curious does anyone have any experience starting a consulting firm? Iâm contemplating giving it a go and was curious if anyone has any resource recommendations or advice to offer.
I would be consulting primarily on budgeting, related analysis, and recommendations. Iâm thinking about offering bookkeeping services as well.
I do a fair amount of this in my regular job at this point in my career.
Biggest downside⊠You have to be on your A game 24/7. You canât have bad days. And youâll be dealing with, and kissing the ass of incompetents. Some of those will throw you under the bus to cover up for their inability to get the job done. And you have to be very, very careful about your criticism of them to their management. Itâs a song and dance, and an art form.
Your job, as owner/upper management will be significantly more about building relationships with clients and significantly less about teaching them how to do things. So youâll need staff under you to do the teaching, while you develop the relationships. Which means hiring the right people, the first time.
Everything CB just said. Dealing with incompetent people would be the biggest challenge. Particularly from the stand point you have to micromanage but theyâll get upset you micromanage. And getting business.