Timing is important when deducting business expenses. For Start-up Business expenses you can deduct them in the year your business is operational. The business start date is the date when a company starts its actual operations, rather than the date of incorporation or registration. It is the day when the business officially begins providing goods or services to customers, generating revenue.
Start-up expenses have to be amortized with a recovery period that starts with the month the business begins to operate active trade or as a business. See the following IRS page for more information on deducting start-up expenses.
Here’s how businesses can deduct startup costs from their federal taxes
If you would like to see more information about Start-ups, see the TurboTax help article below:
Start-up business tax tips
