Question!
(sole proprietorship)
In a case where you have $20K in startup costs (labor to develop software), start the business, it fails the first year. Can amortize $5K in expenses the first year and amortize the remainder over 15 years. However since the business failed, can you take the full 20K as a captial loss or do you need to amortize the first 5K as an expense and then take the remaining 15K as a capital loss?
If you do take a capital loss, where does it get reported, which IRS form?
