Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Business Owners: New Business Owners—Unlock Startup Costs as Part of Your Tax Strategy!

Name: Painting Business Owners: New Business Owners—Unlock Startup Costs as Part of Your Tax Strategy!
Uploaded: 2024-12-05T14:15:02+00:00
Duration: 54 s
Channel: Daniel Honan
Description: In this concise monologue, the speaker addresses brand‑new painting business owners, explaining that to benefit from immediate tax deductions on startup…

5 Dec 2024 · 1 min

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In this concise monologue, the speaker addresses brand‑new painting business owners, explaining that to benefit from immediate tax deductions on startup expenses they must first generate some revenue. Startup costs—such as advertising, equipment, vehicle purchases, and organizational fees—are normally amortized over several years if no income is recorded, delaying the tax benefit. By securing even a small job (e.g., a $100 paint job or hanging Christmas lights), the business can move out of “startup mode,” allowing all incurred startup costs to be written off in the current tax year (2024). The speaker urges owners to proactively seek modest work, like knocking on a neighbor’s door, to get revenue on the books and unlock those deductions.

Chapters

for brand new baby businesses that have just come into existence, get out of startup mode. What I mean by that is show some revenue. Go do a job. I don't care if it's a big job or a little job, you just need some money coming in the door. The reason for that is because starting up your business was expensive. Even before you got your first check from a customer, you had advertising and organization charges, bought equipment and vehicles and everything else. Until you start getting revenue in, those expenses have to be amateurized and spread out over several years as startup expenses. That's no good for you because you want to be able to write those off now. So in order to unlock those startup expenses, we just need to show a little bit of revenue. So knock on your neighbor's door and ask them if there's a wall you can paint for $100. Maybe you offer to hang his Christmas lights. Just get a little bit of revenue on the books, and now all those startup costs unlock, and you'll be able to take those deductions in 2024.