If I started my business in December 2017 and didn't deduct any start up costs on my 2017 tax return, can I do so on my 2018 return?

[Cindy0H · Accepted solution]

If you started your business in 2017 but it begins to become active only in 2018, you can deduct up to $5,000 of start-up costs in 2018. However in TurboTax, if you do not state that you started the business in 2018, the Startup costs will not show up as an Expense in the program.

IRS information on Business Expenses:

https://www.irs.gov/publications/p535#en_US_2018_publink1000208939

[Carl]

Just to re-interate a bit. Startup expenses are deductible in the first tax year the business is "open for business". That would usually be the first year you even file a tax return for the business - but not always.

[Cindy0H]

I understand. Your other option is to amend the 2017 return and include those costs or place those expenses under other categories in the 2018 return.

[chaines2018]

Thank you