Accounting & Bookkeeping & Small Business Forum

Guest · Posted: Tue Jan 06, 2004 4:00 pm Post subject: Start-up expenses

Hi,

I have a mfg client that has taken the better part of one year to do research, product development, etc. prior to product launch approximately 10 months later. They had very little actual sales in 2003 but many expenses. Does anyone have some sound advise on what types of expenses during the 10 months can actually be considered start-up and amortized? Any good reading on the subject?

Thanks, Micki

Guest · Posted: Sat Jan 10, 2004 4:31 pm Post subject: RE: Start-up expenses

Hi, There are a few ways to look at it. the only thing I can see that wouldn't be start up wpuld be his labor and day to day operation expenses and maybe any new expenses that are not tied into exacual openeing.

Guest · Posted: Tue May 18, 2004 4:35 pm Post subject: RE: Start-up expenses

If I understand it right the start-up expenses would not be considered expenses but would be investments and would have to be taken as depreciation or amorization. In some cases it would fall under 179 depreciation. Check the IRS publications for more detailed information PUB.4562.