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solzc
New Member

I opened a line of business credit $30G for new business. Used portion for training program. No business was made last year. Can I claim as a startup expense? If so, how?

The training program was targeted for that new business. I understand if I was not in the business at that time it was incurred, one could write off as continuing education. Since I was not in the business at that time, can I claim as a startup expense? And where?
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Accepted Solutions
KarenL2
Level 5

I opened a line of business credit $30G for new business. Used portion for training program. No business was made last year. Can I claim as a startup expense? If so, how?

Yes, it would be a Start Up expense deductible in the year your business starts.

"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."

Start-up costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business.       Organizational costs include the costs of creating a corporation. "

Note: You can elect to deduct or amortize certain business start-up costs. Refer to chapters 7 and 8 of Publication 535, Business Expenses

How to get there in TurboTax:

While inside the software and working on your return, type start-up expenses in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to  start-up expenses.  Select that to get to the general area.  


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1 Reply
KarenL2
Level 5

I opened a line of business credit $30G for new business. Used portion for training program. No business was made last year. Can I claim as a startup expense? If so, how?

Yes, it would be a Start Up expense deductible in the year your business starts.

"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."

Start-up costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business.       Organizational costs include the costs of creating a corporation. "

Note: You can elect to deduct or amortize certain business start-up costs. Refer to chapters 7 and 8 of Publication 535, Business Expenses

How to get there in TurboTax:

While inside the software and working on your return, type start-up expenses in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to  start-up expenses.  Select that to get to the general area.  


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