I just read through the highlights of the new small business act that passed Congress and was signed by the President.
One of the highlights is for entreprenuers:
- An Increase in the Deduction for Entrepreneurs’ Start-Up Expenses:The bill temporarily increases the amount of start-up expenditures entrepreneurs can deduct from their taxes for this year from $5,000 to $10,000 (with a phase-out threshold of $60,000 in expenditures), offering an immediate incentive for someone with a new business idea to invest in starting up a new small business today.
I don’t understand how this is an incentive. If an entrepreneur starts a business, they won’t have an income to deduct. What am I missing?
Finding Nilay 