Deemed Election to amortize start up cost

Rmarsh19 — Tue, 16 Mar 2021 03:00:10 GMT

I have turbo tax Business, trying to file my initial return however it is telling me that I need to file a Deemed Election to amortize start up cost. I can not figure out how to do it.

Re: Deemed Election to amortize start up cost

ColeenD3 — Sun, 21 Mar 2021 20:11:47 GMT

For start-up or organizational expenses defined in sections 195(c)(1), 248(b) and §1.248-1(b), and 709(b)(3) and §1.709-2(a), paid or incurred after September 8, 2008, the regulations provide that a taxpayer is deemed to make an election to deduct start-up and/or organizational expenses for the taxable year in which the taxpayer begins business.

Therefore, a taxpayer is no longer required to attach a statement to the return or specifically identify the deducted amount as start-up and/or organizational expense for the elections to be effective. A taxpayer may choose to forgo the deemed election by clearly electing to capitalize its start-up and/or organizational expenses on a timely filed federal income tax return (including extensions) for the taxable year in which the taxpayer begins business.

The election to capitalize start-up and/or organizational expenses is made in accordance with the form and instructions used by the taxpayer to file its federal income tax return. An election either to deduct start-up and/or organizational expenses or to capitalize start-up and/or organizational expenses is irrevocable and applies to all start-up and/or organizational expenses of the taxpayer.

You will need to go to the depreciation section. The asset is Intangible and other Property. Follow the prompts on the screen and elect 5 year property.

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Deemed Election to amortize start up cost

Re: Deemed Election to amortize start up cost