Do startup costs include initial purchasing of items like computers/software/cameras?

matthewvanswol — Sat, 01 Jun 2019 01:16:34 GMT

No. Those items you mention would be separately capitali...

TomYoung — Sat, 01 Jun 2019 01:16:36 GMT

No. Those items you mention would be separately capitalized and/or expensed.

"Start-up" costs pertain to the creation and organization of the business entity itself, e.g., fees and other costs related to establishing an LLC in a state, or the creation of an S or C corporation, and research costs, etc. in determining if the business activity itself is viable or makes sense. Here's the IRS's take on what comprises start-up costs:

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Business Start-Up Costs

Start-up costs are amounts paid or incurred for: (a) creating an active trade or business; or (b) investigating the creation or acquisition of an active trade or business. Start-up costs include amounts paid or incurred in connection with an existing activity engaged in for profit; and for the production of income in anticipation of the activity becoming an active trade or business.

Qualifying costs. A start-up cost is amortizable if it meets both of the following tests.

It is a cost you could deduct if you paid or incurred it to operate an existing active trade or business (in the same field as the one you entered into).
It is a cost you pay or incur before the day your active trade or business begins.

Start-up costs include amounts paid for the following:

An analysis or survey of potential markets, products, labor supply, transportation facilities, etc.
Advertisements for the opening of the business.
Salaries and wages for employees who are being trained and their instructors.
Travel and other necessary costs for securing prospective distributors, suppliers, or customers.
Salaries and fees for executives and consultants, or for similar professional services.

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Tom Young

If those items are $200 or less per item, then you can ad...

TaxGuyBill — Sat, 01 Jun 2019 01:16:37 GMT

If those items are $200 or less per item, then you can add them to Startup Expenses. For any items over $200 per item, they are added as separate "assets" into TurboTax.

topic Do startup costs include initial purchasing of items like computers/software/cameras? in Get your taxes done using TurboTax

Do startup costs include initial purchasing of items like computers/software/cameras?

No. Those items you mention would be separately capitali...

If those items are $200 or less per item, then you can ad...