Need to correct startup costs

[Nodes71]

Hi

In the Business summary, the line "Other Common Business Expenses" has a total which includes the startup costs.

When I click on "Update", I can see all the categories (Advertising, Business Travel, ...), but there is no category representing the "Startup costs" and no category with the corresponding amount.

In short.. I don't find any way to update the amount I incorrectly entered..

Can someone help me ?

[ZoltanB45]

Generally, Turbo Tax guides the taxpayer to enter the Startup Costs in "Other Miscellaneous Expenses." You may have manually entered that title in that section.  

[Nodes71]

Yes I did !

Now I need to update this value. Unfortunately I didn't find any mean to access and update it...

[JamesG1]

Update start up costs as follows:

• In TurboTax H & B, click on Business / I'll choose what I work on.
• Click Update to the right of the Business entity to be updated.
• Click Edit for the business activity to be updated.
• Scroll down to Other Common Business Expenses.  Click Update.
• Scroll down to Other Miscellaneous Expenses.  Click Update.

You can deduct up to $5,000 in startup and $5,000 organizational costs as current expenses if the costs are under $50,000, respectively.

You can choose to amortize startup and organizational costs greater than $5,000, respectively, (but less than $50,000, respectively) over a period of 15 years.

@Nodes71

[Nodes71]

Thanks James

Unfortunately, this is what I tried 10 times before reaching to you 🙂

When I click Update in front of "Other Miscellaneous Expenses", then I reach a page named "Any Miscellaneous Expenses ?".

On this page, I have an expense listed, but nothing linked to "Startup costs"

So I click on "Continue" and it directly returns to "Let's write off some business expenses"

What seems wrong is that on "Let's write off some business expenses" page, in front of each category, there is the total amount of the expenses... and the amount in front of "Other Miscellaneous Expenses" corresponds ONLY to the amount of the expenses listed in the associated page. The Startup cost is not taken into this amount but... when I come back to the page ""Your XXX Business", the amount listed in front of "Other Common Business Expenses" includes the startup costs.

It is very weird...

[ZoltanB45]

It seems like you cannot find the startup costs under "miscellaneous expense." If it is not such a huge difference, I would reconcile the difference by either adding or deleting an expense from elsewhere to even the total expenses out.

At the end of the day, an expense is an expense, so I would not go crazy over it. Then again if you overvalued the "startup costs"  by thousands of dollars, then maybe deleting the self-employment section and entering again is the best option.

[Nodes71]

In fact I entered a 1.4k$ expense as a startup cost whereas it should have been a Miscellaneous expense.

The total of my Common Business Expenses being ~2k$.

What do you recommend ?

If it is better to change, can I make the change by editing the forms ? Rather than deleting everything ?

[DianeW777]

The start up costs you choose to expense in the first year of business can be edited by following the steps below.  If necessary you can go to the Business Profile to be sure you have marked 'Yes' for 'Acquired Business in Current Year'. Start up expenses are allowed to be expensed the first year the business opens operations.

1. Update the Business > Click Edit beside the business > Scroll to Business Expenses > Click on Startup Costs
2. Once completed you should be able to click on Forms (upper right) then view the Schedule C, Line 27a.
3. See the image below.

[Carl]

You just need to start at the very, very beginning of the business section and work it through to see your business listed there. Elect to edit it and that will open a screen titled "Your <businessname> Business" The first item listed is "Business Profile". But don't click that. Scroll down to "Business Expenses" and if 2021 is the year you started your business, the absolute first item listed under Business Expenses is "Startup Cost". Elect to edit that and work it through to make changes as necessary.

[Nodes71]

Thanks a lot !

Problem solved. 

Start up costs was not available in the Misc Expenses because the Business Profile was not described correctly.

Thanks again !

[Win2]

Hello,

I am having the same problem.

how did you solve it?

[PatriciaV]

First, go to your Business Profile and confirm that you checked the box "Yes" for "Acquired Business in Current Year."

Continue to the Business Summary Page. 

Under Business Expenses, the first item should be Startup Costs. Click Update to review your entries.

If you entered your Startup Costs under Other Common Business Expenses, update that section instead.

Your other option is to use Forms Mode to find your entry on Schedule C or Schedule E Wks. In most cases, you can manually edit your previous entry, as long as the number is in a blue font.

You may expense up to $5,000 in startup costs in the year that your business starts. If your startup costs exceeded $5,000, you may have entered the excess as an Asset for Depreciation. 

@Win2 

[maria617]

Yep. deleting the business and starting over is about the only thing that can be done if you want to edit the startup costs. What a stupid bug. And terrible that Turbo Tax (Intuit) hasn't fixed it by now. 

[maria617]

Thanks for this explanation but the "first item" under Business Expenses is NOT "Start up costs." 

My situation is unique. The date I acquired the business is not the date that it became operational. This is why I don't see Start up costs and hence cannot edit them. I haven't tried doing directly in forms but I think it's easier to just delete that business and start over. 

I also don't know why my Schedule C says "Sole Proprietor" when I'm an LLC. I can't seem to find a way to update that even in FORMS.