Assuming that your start-up costs are less than $50,000,
- You may deduct the first $5,000 in start-up expenses against current income.
- The portion over $5,000 would be amortized over 15 years, so a portion of this amount would also offset current income.
Expenses paid or incurred after October 22, 2004:
- You can deduct up to $5,000 in startup and $5,000 organizational costs as current expenses if the costs are under $50,000, respectively.
- You can choose to amortize startup and organizational costs greater than $5,000, respectively, (but less than $50,000, respectively) over a period of 15 years.
- If your startup or your organizational costs are more than $50,000, respectively, the excess amount reduces the amount you can deduct.
See TurboTax Best Answer.
@BiggyFig
[Edited 02/28/2021 8:31 AM PST]
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