Yes, your start-up can be amortized or you can deduct up to $5,000.
Start up costs are those expenses incurred in planning and setting up the business, costs you incur before you open the door.
A portion of startup and organizational costs can be expensed (written off in your first year). The remainder can be amortized (written off over a period of 15 or more years).
Here is how it works:
Expenses paid or incurred after October 22, 2004:
- 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.
- If your startup or your organizational costs are more than $50,000, respectively, the excess amount reduces the amount you can deduct.
In addition please see this answer from IsabellaG:
According to the IRS:
If your attempt to go into business is unsuccessful. If you are an individual and your attempt to go into business is not successful, the expenses you had in trying to establish yourself in business fall into two categories.
- The costs you had before making a decision to acquire or begin a specific business. These costs are personal and nondeductible. They include any costs incurred during a general search for, or preliminary investigation of, a business or investment possibility.
- The costs you had in your attempt to acquire or begin a specific business. These costs are capital expenses and you can deduct them as a capital loss.
You would report that in Turbo Tax Premier, under Federal Taxes> Wages And Income> Investment Income>Stocks, Mutual Funds, Bonds, Other
You would report that the type of investment you sold was "everything else." and continue entering your information.
Please see this LINK for more information. There are other comments that may be helpful.
