You can deduct start up expenses but education that trains you for a new job is not deductible.
Startup costs come
from investigating the creation or acquisition of an active trade or business.
They are paid or incurred before the business opens its door.
Examples include:
- Market
research
- Travel costs
- Salaries
- Consulting
fees
- Accounting
and legal fees
- Pre-opening
advertising expenses, and
- Overhead
How these expenses
are handled:
Start-Up Expenses are reported in
aggregate - one amount equal to the total
of all expenses incurred. For active business activities, these
costs are entered either under Assets/Depreciation or
under Business Expenses depending...
Per
IRS Pub 535 Business
Start-Up and Organizational Costs: "Business
start-up and organizational costs are generally capital expenditures. However,
you can elect to deduct up to $5,000 of business start-up and $5,000 of
organizational costs paid or incurred after October 22, 2004. The $5,000
deduction is reduced by the amount your total start-up or organizational costs
exceed $50,000. Any remaining costs must be amortized."
As long as your
start-up expenses are less than
$5000, you can add them as Business
Expenses. Continue past the expense categories (or choose Other
Miscellaneous Expenses) to the page titled "Enter
Business Expenses Not Yet Reported" and enter the description &
amount (see screenshots below - click to enlarge).
Topic 513 - Work-Related Education Expenses
You may be able to deduct work-related education expenses paid during the year. To be deductible, your expenses must be for education that (1) maintains or improves your job skills or (2) that your employer or a law requires to keep your salary, status, or job. However, even if the education meets either of these tests, the education can't be part of a program that will qualify you for a new trade or business or that you need to meet the minimal educational requirements of your trade or business.
Although the education must relate to your present work, education expenses incurred during temporary absence from your job may also be deductible. After your temporary absence, you must return to the same kind of work. Usually, absence from work for one year or less is considered temporary.
Expenses that you can deduct include:
- Tuition, books, supplies, lab fees, and similar items
- Certain transportation and travel costs, and
- Other educational expenses, such as the cost of research and typin
