Deductions & credits
If you had R&D expenses prior to starting your Business, you can claim up to 5K as Start Up Expenses the first year. The balance can be depreciated as Amortizable Intangibles, as you suggested. If you choose start-up costs in this section, you don't have to choose a convention. These are amortized over 15 years.
Here's more details on Entering Business Start Up Costs.
An asset is property you acquire to help produce income for your business (equipment/machinery, etc.). For tax purposes, there are six general categories of non-real estate assets. Each has a designated number of years over which assets in that category can be depreciated. Here are the most common ones:
- Three-year property (including tractors, certain manufacturing tools, and some livestock)
- Five-year property (including computers, office equipment, cars, light trucks, and assets used in construction)
- Seven-year property (including office furniture, appliances, and property that hasn't been placed in another category)
Here's detailed info on Depreciation of Business Assets to help you.
When you set up your Business Assets your first year, you are presented with several options (screenshot).
