I don't have anything to amortize for my business. can I delete the election to amortize startup cost?

[MichaelDC · Accepted solution]

If you don't want to amortize your start-up costs, then follow these steps

• Switch to Forms mode
• In the left pane, select the form you want to remove (Election to Amortize Startup Costs) 
• After the form is generated in the right pane, click the Delete Form button at the bottom of the window.

For TurboTax Online:

1.      Open your return.

a.       (To do this, sign in to TurboTax and click the orange Take me to my return button.)

2.      In the upper right corner, click My Account > Tools.

3.      In the pop-up window, select Delete a form.

4.      Click Delete next to the "Election to Amortize Startup Costs"  and follow the onscreen instructions.

If you report Start-Up Costs in excess of $5,000, you have made the election (no statement or form is required). If you receive an error on review, return to the Start Up Costs section and check your entries for the pages after the initial input. 

Startup Costs are generally entered under Business Expenses from the Business Summary page under the Business tab in TurboTax Online (see screenshot #1 below - click to enlarge). This option appears if you checked the box for "I started my business in 20XX."

To find this section easily, search on "schedule c" and jump to the start of this section. Continue through the screens until you find the Business Expenses page for your business.

Enter a custom description, the total amount (may be more than $5,000), and a date before you began your business (usually the first date you incurred any start-up expense). See screenshot #2 - note Learn More info.

If you entered more than $5,000, enter the amount you wish to deduct on the next page, and TurboTax will calculate the amount to be amortized and select the correct period for you.

If you have an active business (not rental), you can expense up to $5,000 in startup costs the first year and amortize anything over $5,000. The balance of Start-Up Costs over $5,000 are entered as an Asset for Depreciation (Intangible, Code 195, over a period of 15 years). 

Startup costs for Rental activity must be amortized because this is a passive activity. Section 195 for Start-Up Expenses applies to active businesses only. See this discussion for more (ext link): How to Deduct Startup Expenses for Rental Property

If you did not have any startup expenses, go back to the summary page for your business and review your input to move the costs to another category.