Start-up Tax Deductions while on H1B


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I have started my own software start-up since Jan 2011 where I was on H1B visa. I am also full-time employee at another company which is independent from my start-up. I got my green card last Feb 2012.

For my software start-up, I have spend my own money to pay for things like amazon cloud, hardware and so on. Plus, I have used my personal phone and rented apartment to conduct most of my start-up activities.

1>Can I deduct my the above expenses related to my start-up cost from my 2011 personal tax in general?

2>Does me being on H1B last year and given that my start-up is NOT profitable yet changes anything for the tax deduction purposes?

3>Does claiming such tax deductions complicate things if my start-up was going to get funded at some point?

Tax

asked Apr 15 '12 at 19:17
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I Code
111 points
  • Do you have c-corp/s-corp/LLC? – Salmon 12 years ago

2 Answers


1

I would not even ask about that because of the risk of your green card being revoked. Especially if you had something other than C-corp. Filing this for tax benefits to IRS is like saying "I did an illegal activity when I was on H-1b".

answered Jul 9 '12 at 05:22
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Salmon
970 points

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Can I deduct my the above expenses related to my start-up cost from
my 2011 personal tax in general?

Likely so, from your startup taxes (however its organized). There are specific types of expenses that can be considered "startup costs". Discuss that with your tax adviser.

Does me being on H1B last year and given that my start-up is NOT
profitable yet changes anything for the tax deduction purposes?

No. But it does change things for the immigration purposes. You might get your green card revoked and yourself deported. Discuss that with your lawyer.

Does claiming such tax deductions complicate things if my start-up was
going to get funded at some point?

Can't think why.
answered Jun 9 '12 at 03:16
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Littleadv
5,090 points

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