Tax regs have changed, so make sure you buy the NEW book, and don`t rely only on what you hear in a forum.
The first $5k of startup cost is immediately deductible. The balance would generally be amortized over 15 years, not 5 years.
Street clothing is generally not an allowable deduction. You could deduct it, but you should expect to lose the deduction under audit. And if you itemize it on your return, you might expect a higher possiblity of audit.
That PC is 5-year class life, not 7, and will probably be immediately deducted under IRC section 179 rather than depreciated over 5 years under IRC section 167.
Scott Reynolds, CPA
You were wrong that is not the message. The message was (Please read the topic and content)
I think that every business owner should be aware of what can be duducted and what can`t. It is good practice for a business owner to know what`s going on in his own business. Yes counting on an attorney and CPA is good idea, but shouldn`t you be aware of them too. So lets say you are expecting a return on something you purchased, what if it can`t be subtracted?
Then what? you were expecting it to be deducted, but now you are yelling at your accountant.
Standard business practice, know some accouting as well as running your business.
Of course, to be successful with your business, you should have a basic knowledge of accounting, taxes and management. But, don`t get bogged down and spend all of your time on things that can be outsourced, so you can concentrate on the core activities necessary to successfully grow your business.