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Get your taxes done using TurboTax
In TurboTax Home & Business, Startup Costs have a separate line under Business >> Business Income and Expenses >> Business Expenses.
Up to $5,000 of startup costs paid or incurred can be deducted if the total startup costs incurred don't exceed $50,000. An election can be made to amortize costs in excess of $5,000 over a period of 15 years. The IRS sets this rule -- you cannot choose a different amortization period.
- On the Startup Costs line, click Start/Update to begin.
- If you have already entered costs under this topic, you can either Edit this entry or Add Another Startup Cost. Assume you are entering for the first time.
- Enter a description (legal costs, for example), the amount, and the date you paid this expense.
- On the Startup Cost Summary page, click Done.
- On the page "How much of your costs do you want to expense for 20XX?" note the message below the header, then enter up to $5,000 to expense this year.
- Click Continue.
- You'll see "Startup Costs Summary" that displays how much you are deducting this year and what will be amortized over the next 15 years.
- Click Continue to return to the Business summary page.
If you have entered these costs under another topic, you will need to update that section and delete the entry you made.
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‎April 9, 2024
6:06 AM