Start-Up Costs: Correct Reporting by Farmers for Income Tax Purposes

Authors

Guido van der Hoeven, North Carolina State University

Files

Description

Income tax rules apply to expenses that are incurred and paid before a business exists. These expenses are referred to as “start-up expenditures” or “start-up costs.” The IRS provides guidance relative to the deductibility of these start-up costs for any individual or entity beginning a new business, such as a farm. These rules apply regardless of the nature of the business or the organizational structure ultimately used in operating the new business. A challenge for the beginning business owner is to identify the “start date” of the business. Expenses incurred prior to the start date are generally considered start-up expenses, to which the IRS rules apply.

Publisher

Rural Tax Education

Publication Date

7-2016

Keywords

start-up, reporting, farmers, income tax

Disciplines

Education | Higher Education | University Extension

Recommended Citation

van der Hoeven, Guido, "Start-Up Costs: Correct Reporting by Farmers for Income Tax Purposes" (2016). Rural Tax Education. 4.
https://digitalcommons.usu.edu/rural_tax/4