Start up cost for business

[tntsnyder]

My husband and I file a joint return. We started a business in 2016. Your site advises us that we claim expenses 50/50 on our return. Are we both able to claim up to $5000 in start-up expenses or just one of us? When walking through Turbo Tax it lets us both claim $5000. Is this correct?

[MargaretL · Accepted solution]

Yes, it is correct. The maximum start-up amount that can be claimed as an expense is $5,000, the rest is amortized. So, if you paid $10,000 for your start up or more, each of you can deduct $5,000. However, you must take into account the items in accordance with each spouse's interest in the business. If that interest is 50/50, you would divide business items in half.

[rusgel]

Does this apply for a business outside of the US? I started a business in France in 2016, can I claim half of the expenses? Thank you!