How long does it take to start a business?
Personally, it took six years of spending (on average $1,000/month) without making a dime. In year seven (2015) i finally made my first dime.
i told my tax professional i have carried a deep fear the IRS would tell me, “You have been deducting expenses for six years without any income. Is this a hobby or a business?”
In year seven, 2015, i was blessed to not only have income, but have enough income that removed any doubt whether it’s a hobby or a business.
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is one that is common and accepted in your field of business.
A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be indispensable to be considered necessary.
__________
This website is about our home health. To leave this site to read today’s post on my mental attitude website, click here.
