You can elect to deduct up to $5,000 of start-up costs in the year in which the active trade or business begins. Any remaining costs must be amortized.
If you started your business in 2021 but it begins to become active only in 2022, you can deduct up to $5,000 of start-up costs in 2022 and you enter these costs on your 2022 tax return.. You do not enter start-up costs in the year(s) prior to the business becoming active.
You can also elect not to deduct those start-costs and amortize them. Start-up costs are amortized over a period of 180 months (15 years).
Please read this IRS document for more information, under the heading Business Start-up and Organizational Cots.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
