RobertB4444
Expert Alumni

Business & farm

For this year your deduction for startup costs is limited.  You're allowed to deduct $5000 of what you spent - as long as you didn't spend more than $50,000.  If you spent $5000 or less it's easy - you take the whole deduction this year and you're done.  If you spent more than $5000 then it gets complicated.  Everything that you don't deduct this year needs to be amortized over the next 15 years.

 

Fortunately this is easy to do with TurboTax.  Tell it you have a business and then enter in your costs.  It will ask if it's new and then it will set up the amount that you are allowed to deduct for you.

 

This article has a lot more information on start up costs if you're interested.

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