write off licensing fees

[EMDoc]

I'm a senior resident who has recently signed a contract as in independent contractor.

I was told I could write off all costs related to my new job.  In 2015 I spent roughly $1500 in licensing and attorney fees for my new position.  In 2015, I generated $0 of income as an independent contractor.  All my income came from my resident salary.

So can I write off these expenses in my 2015 taxes?  And if so, how?

 

Moving forward I will have a CPA handling my taxes, but this year since my income was relatively low, I have opted to file them myself.

 

 

[childay]

You may be able to deduct as a "startup cost"

I am sure someone more knowledgeable will chime in

[LH]

I'd write it as an expense for your corporation, then carry it forward as a loss for the next year. You can deduct it against your income next year when you will certainly be in a higher tax bracket. No point this year when your tax bracket is nothing.

[jfoxcpacfp]

You are describing start-up costs for a new business. Normally, start-up costs are amortized over 180 months. However, you can deduct 100% of up to $5,000 of startup expenses (as long as your startup expenses don't exceed $50,000) even though you do not have any income. This is a "deemed" election.

You will not be able to carry them forward to next year unless you make a clear election to capitalize startup costs (bypass the up-front deduction). In that case, you will have to spread them over 180 months, not deduct 100%.

Both elections are irrevocable.