Education Expense as Start up Cost - How to account for it

SpokaneFiberCleanSpokaneFiberClean Member Posts: 8

Hi,

I have 2 questions. First, I spent $20K of my own money in education as part of start up costs. It was purchased before my LLC officially started. Can I add this expense to Wave as owner investment?

Second, once I categorize it, how do I pay myself back for the initial expense?

Comments

  • AlexLAlexL Member Posts: 2,869 ✭✭✭

    Hey @SpokaneFiberClean , you'd be best reaching out to an accountant or CPA about both of these questions as they're both somewhat more complex than what we typically answer.

  • MikegMikeg Member Posts: 995 ✭✭✭

    @SpokaneFiberClean,
    Unfortunately, the Internal Revenue Code would not allow education expenses to be capitalized as Start Up expenses under IRC Section 195. You could however, try and claim some credits on your 1040.

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