Costs on setting up a new business

Costs on setting up a new business or trade ( aka pre-trading expenses )

A deduction is available in respect of pre-trading expenses which:

1. 1. are incurred in the three years prior to commencement of the trade or profession, (i.e normally before first sale is made )
   2. and would have been allowable if they had been incurred after the date of commencement of the trade or busines

Common examples would be:

1. accountancy fees,
2. advertising costs,
3. costs of feasibility studies,
4. costs of preparing business plans
5. rent paid for the premises from which the trade or profession operates

Ensure to keep copy of receipt/invoice and proof of payment etc

These costs can be added to losses forward to offset against first year you make a profit on the new trade.

Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie