You can deduct up to $5,000 for the first year as long as your total start up costs were less than $50,000. If they were more than $50,000 then you would reduce the $5,000 dollar for dollar for the amount over $50,000. So if your total start up costs were $53,000, you would only be able to deduct $2,000.
The rest of the start up costs are amortized over 15 years.
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