Deductions & credits

Deduct your start-up costs in the tax year your business begins (i.e., when you are open for business).

Start-Up Expenses are reported in aggregate - one amount equal to the total of all expenses incurred. For active business activities, these costs are entered either under Assets/Depreciation or under Business Expenses depending...

Per IRS Pub 535 Business Start-Up and Organizational Costs: "Business start-up and organizational costs are generally capital expenditures. However, you can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred after October 22, 2004. The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Any remaining costs must be amortized." Source Expert PatriciaV

• If your startup costs are more than $55,000, the deduction is eliminated.

To enter your start up costs:

1. Sign into your TurboTax account.
2. Select Pick up where you left off.
3. Select Federal from the left side menu.
4. Type Schedule C in the search bar and click on Jump to Schedule C.
5. On the Tell us the type of self-employment work you do screen, enter your business information and Continue through the rest of the interview.
6. On the Your XXX info screen, verify what you entered select Looks good.
7. On the Let’s enter the income for your XXX work screen, click on Skip for now and Continue. 
8. On the First, select the expenses you know you had screen, scroll down to Less common and expand (arrow down).
9. Put a check mark in front of Startup costs and Continue. If you don't see startup costs, select Continue. 
10. On the Here ae some expenses you may want to check screen, you'll see Did you have startup costs for your work?
11. Continue with the onscreen interview until complete.