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posted Mar 26, 2021 12:44:41 PM

Startup Deductions

I started a business and utilized the IRS startup deduction of 3k (allows up to 5K).  How do I account for that deduction in QB? So that everything matches?  

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3 Replies
Employee Tax Expert
Mar 26, 2021 2:41:21 PM

QuickBooks has their own support community.

 

You can find a link here. 

Level 15
Mar 26, 2021 5:17:00 PM

I can, and don't mind helping with that, "provided' you are using the CD version of QB that you installed on  your computer. If so, what version is it? 2017, 18, 19 or 20?

 

Level 15
Mar 26, 2021 5:37:48 PM

This applies to QB 2018 and newer

- In QB select LISTS then CHART OF ACCOUNTS
- Right-click any account in that list and select NEW
- Select Other Account Type and in the drop down select Other Expense, then continue.
- You can name the account something like “Startup Expenses”
- For Tax Line Mapping, assign it to Schedile C:Other Business Expenses

That’s it. Click Save and Close and you’re done. It’s just a matter of going back to your entries in the check register and changing the account to “startup expenses” or whatever name you entered for the new account.