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weblance
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Started a business, formed an llc in march, business is in development phase. How do I enter startup costs with no revenue and a business start date in the future.

Formed an LLC in March '16. The business is in the R&D phase with no customers and no revenue. I have continuously deposited seed funding since before the LLC formation and throughout the year. How do I claim the startup and business expenses when my actual business start date is undefined and I have no business revenue to claim yet?
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DawnC0
Intuit Alumni

Started a business, formed an llc in march, business is in development phase. How do I enter startup costs with no revenue and a business start date in the future.

You will enter all of your start-up costs in the year you ''open for business''.  For start-up expenses it does not matter in what year the expense was incurred.  Some businesses take years to "start up" before they are open.   

Start-Up Expenses are reported in aggregate - one amount equal to the total of all expenses incurred.  In the year you become ''open for business'', these costs are entered either under Assets/Depreciation or under Business Expenses depending on the amount.

  • Per IRS Pub 535 Business Start-Up and Organizational Costs: "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."

In TurboTax, there is a special place for these costs to be entered once you are ready to do so.  

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