Turbo Tax- Business is adding the costs together as it is entered in both the Payments to Independent Contractors and under the New Business Expenses. We sent the attorney a 1099-Misc. even though they are an S-Corp. because attorney's are always supposed to be 1099'ed. Where should the information go on Turbo Tax Business so our startup expenses are not doubled (added with the Payments to independent Contractors).
Thanks!
Matt
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Once you entered the costs under payments to Contractors, you don't need to enter it again. If you enter any cost under multiple categories, it will be double counted. You only need to choose the category that best applies to your business purpose of the expense.
However, startup costs are deducted differently and should only be entered as such. The special treatment of startup costs only applies if your business hadn't started yet. Once you are "open for business" so to speak (even if you don't have sales), you can deduct these costs under the applicable business expense category.
If your business still hasn't 'started', these costs are an asset and you begin deducting them through amortization in the month your business starts. The following Quickbooks article does a good job of explaining startup costs and how they're deducted, which you can find HERE.
Once you entered the costs under payments to Contractors, you don't need to enter it again. If you enter any cost under multiple categories, it will be double counted. You only need to choose the category that best applies to your business purpose of the expense.
However, startup costs are deducted differently and should only be entered as such. The special treatment of startup costs only applies if your business hadn't started yet. Once you are "open for business" so to speak (even if you don't have sales), you can deduct these costs under the applicable business expense category.
If your business still hasn't 'started', these costs are an asset and you begin deducting them through amortization in the month your business starts. The following Quickbooks article does a good job of explaining startup costs and how they're deducted, which you can find HERE.
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