Startup cost written off

[CornellCheung]

Hi,

I have a startup in 2022, and the total startup cost in 2022 was $8000. The amount can be deducted in 2022 was limited to $5000.  When I filed 2022 tax, it says the amount of $3000 to be written off over 15 years.  How do I file the deduction of $3000 for 2023 tax return?  Thank you.

[LeticiaF1]

If you used TurboTax last year to do your 2022 tax return, and you already entered the $3000 to be amortized, then the program will automatically pull that information from last year to your 2023 return.  If you did not use TurboTax last year and you need to enter it go to:

1. Login to your TurboTax account
2. Go to Tax Home then Wages & Income
3. Select Edit/Add next to Self-employment income and expenses
4. Edit the business
5. Edit your Assets
6. Add amortization and follow the questions

If you did not enter it on your 2022 return, you might want to amend your 2022 return.

See the following TurboTax help articles if you would like more information:

Start-up Business Tax Tips

How do I amend my federal tax return for a prior year?

 

[CornellCheung]

Thank you.  I did use Turbotax for my 2022 return.  But how do I know whether I entered the $3443 to be amortized during 2022 tax return?  

The screen shot below is what I had from last year during the tax return.  Can I tell whether I entered the amount to be amortized from it?  

If I did entered the amount to be amortized, since the program will automatically pull that information from last  year to my 2023 return, so I don't need to input anything right?  Where can I find that information from my 2023 return if that's the case?  

[LeticiaF1]

You can review your business asset summary to make sure that the information was entered in 2022 and that it is being carried forward to 2023.  To do this in your 2023 TurboTax follow the steps below:

1. Login to your TurboTax account
2. Go to Tax Home and select Wages & Income, then select to Pick up where you left of 
3. Edit Self employment
4. Next to Expenses and Assets, select Edit
5. On the next screen you can either review each asset or go directly to you asset summary

The asset summary will show you all the assets and amortizations that have been entered, the date they were placed in service, if there are any special depreciation  amounts, and the current depreciation amounts for the year.  

Feel free to reach back if you have additional questions.

@CornellCheung