Unfortunately the start-up expenses must be used on the tax return after the business operations begin. In 2022 you can use the start-up expenses in one of two ways.
- Amortize all of them over 180 months (IRC Section 195 Property)
- Deduct them up to $5,000 in the year the business is open.
- Start up costs - if you had any expenses before you actually opened for business services such as legal fees, market study or organization fees
- The IRS allows you to deduct $5,000 in business startup costs and $5,000 in organizational costs, but only if your total startup costs are $50,000 or less
- Add them as Business Expenses. Continue past the expense categories (or choose Other Miscellaneous Expenses) to the page titled "Enter Business Expenses Not Yet Reported" and enter the description & amount
- If you have more than $5000 in start-up costs, the remainder is entered under Assets/Depreciation as a capital asset for amortization (TurboTax provides this category for you).
@jmguitas
[Edited: 02/18/2022 | 7:22a PST]
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