PatriciaV
Employee Tax Expert

Get your taxes done using TurboTax

No, do not enter your startup costs under business expenses. The message you see about amortization is saying that you entered this cost in the wrong place.

 

The IRS rules allow you to deduct up to $5,000 of startup costs in the first year. Any amount that you do not deduct in the first year MUST be amortized over 15 years. You cannot choose to amortize these costs over a shorter period of time.

 

Follow the instructions provided earlier to correctly report your startup costs.

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