Deducting time/labor expenses in development phase

mungojeriemungojerie subscriber Posts: 1
Hi all - I`m new to the site and looking forward to getting to know y`all.  I have a burning question that I just can`t find an answer to... not online, not on the phone with H&R Block, and not on the phone with the IRS - !(Or, maybe just not the answer I want. )I`m a web developer building a site for an online-only business I will launch early next year.  I`m putting in a ton of time into this, unbilled of course (not getting money yet so can`t pay myself).  Is there any way I can deduct this time at a reasonable rate from my personal tax burden for 2006?I quit my job and have worked already about a month.  Is this in some way deductible, in part or in whole, perhaps viewing this as a time investment, or pro bono work, or even "opportunity cost" (since I`m not getting paid for doing something for someone else)??Thanks!  Any leads greatly appreciated.  (What the IRS did say was that on Schedule C, the one about being a sole proprietorship, it`s very difficult to deduct my own time, but I`m not sure she fully understood my situation...)

Comments

  • sreyssreys subscriber Posts: 0


    Life`s not fair ....... time is not tax deductible. The good news is that if you should have any to spare, its not taxable income .... at least not yet.
    Scott Reynolds (CPA)
     
  • jellynetjellynet subscriber Posts: 0
    If it were a corporation, in theory you could deduct it from the corporations income, and then pay yourself against a loan or something from the corporation.  But that would make a net zero transaction, and you would have to pay taxes for the income from the corporation. 
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