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fr31b3rgs
Returning Member

How to deduct startup costs for a new business

In 2017 and 2018 I paid for education in a new field with plans to begin a new business. In 2019 I formed an LLC for the business. 

 

I learned that $5000 in startup costs can be deducted, and over the $5000 would be an amortized deduction over 15 years. Can I claim this deduction on my personal income tax return for 2019? The business has no income in it's first year, so the deduction would be useless on the business tax return.

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4 Replies

How to deduct startup costs for a new business

How to deduct startup costs for a new business

Did you enter your education expenses on your tax returns for those years in order to get education credits?  If not, you could amend to seek education credit such as the Lifetime Learning Credit.

 

https://ttlc.intuit.com/questions/1901526-what-s-the-income-limit-for-the-american-opportunity-and-l...

 

https://ttlc.intuit.com/questions/1901172-what-are-education-tax-credits

 

https://ttlc.intuit.com/questions/1901487-what-is-the-tuition-and-fees-deduction

 

https://ttlc.intuit.com/questions/1899852-what-are-considered-qualified-education-expenses

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
fr31b3rgs
Returning Member

How to deduct startup costs for a new business

The education was not from a learning institution (college or university), but investing courses. How do I write that off?

How to deduct startup costs for a new business

https://ttlc.intuit.com/community/credits-and-deductions/help/what-are-examples-of-education-expense...

 

If your expenses do not fit in these categories then you cannot "write them off."

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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