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04/19/2013 at 09:23AM PDT
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LalaJane
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04/09/11 7:30pm PDT
Viewed by asker 04/10/11 6:56am PDT

Start up costs related to construction

US QuickBooks Pro for Windows

 

Where would I record costs related to planning and construction required prior to opening a cafe? Here are some items I'm not sure what to do with.

1. We paid a company fees associated with helping us design the cafe, with training, etc. It was part of the package they provide. It seems like some kind of professional fee, but was specific to starting the business.

2. Where do all the construction costs go? We lease space in a mall and had to do modifications to the interior prior to opening. Are these start up costs?

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This is such a dicey area in the IRS regs, I would suggest you get with a tax CPA

Some startup costs are expenses, others are capital investments which can be amortized or not, and still others do not qualify at all.

IRS Pub 535

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