JamesG1
Employee Tax Expert

Business & farm

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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