The downside of amortizing is that you get a smaller deduction over 15 years. I'm not sure what you mean by "penalized" if you take a deduction for the full $3,900 in startup costs.
You can deduct up to $5,000 of startup
costs as a current business expense. The remainder is amortized over 180
months. If you decide to amortize the startup costs, they will be a deduction against future income.
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