S Corp Cleaning Business Startup Cost Deductions - Cleaning Supplies

[weston-schmidt]

I am confident that the startup costs I incurred are deductible except for the cleaning supplies I purchased (not including equipment).  The information on the IRS website is fairly vague in the rules for deducting cleaning supplies or anything similar as startup costs. It would make sense to me that cleaning supplies would qualify for a startup cost deduction as how can I open a cleaning company without cleaning supplies.......but maybe I'm missing something.  Thank you for your help!

[RichardG · Accepted solution]

The term "start up costs" usually refers to the expenses for setting up the business, legal fees, for example.  There are separate rules for deducting those costs.  Your cleaning supplies are not start up costs.  They are considered supplies, and are fully deductible.  Enter the cost of these items as supplies. 

[weston-schmidt]

Thank you! The cleaning supplies were purchased before we opened so they don't show on my P&L where I have been getting the totals for my various deductions.  So do I just add the cost of the cleaning supplies before opening to the cleaning supplies I reported that I purchased during operating.  I don't want to red flag the IRS.