Annie in our San Francisco Tax and Asset Protection class asked a very interesting question about where to deduct start up costs when you have multiple businesses. Let's say for example that you have rental property and you set up a separate management company to manage that rental property. Do you deduct your start up costs under the rental company or the management company?

Of course, these are two different businesses, so you will have different start up costs for each. How, then, do you determine which business your start up costs relate to when the costs truly relate to both. Do you allocate them between the businesses (one possiblilty) or do you put them all to one or the other of the companies?

There is no clear answer on this. You should sit down with your CPA, explain your situation clearly, and let them do some research based on your facts and circumstances.

Warmest regards,

Tom