topic Start Up Costs in Business & farm

Start Up Costs

jemmadky — Wed, 11 Feb 2026 03:57:21 GMT

I started my single-owner LLC late last year and incurred start-up costs of less than $50,000, but the business did not have income last year. Can I still claim the $5000 deduction this year and amortize over 15 years? Does it deduct from our personal income instead of business?

Re: Start Up Costs

DaveF1006 — Fri, 09 Feb 2024 21:04:10 GMT

To clarify, $5000 deduction for what?

@jemmadky

Re: Start Up Costs

jemmadky — Fri, 09 Feb 2024 21:12:55 GMT

Thank you for the question. When I am in the start-up costs section in Turbo Tax Home & Business it says if those costs are less than $50,000 then I can claim $5,000 the first year (2023) and amortize the remainder over the next 15 years. However, what I am unclear about is if this is allowable if there was no income for that business in 2023. Does there need to be business income for me to claim the start-up costs? Or since I am a single-owner LLC, does it offset my personal income?

Re: Start Up Costs

Rick19744 — Fri, 09 Feb 2024 21:16:29 GMT

Additional questions:

Did you actually begin your trade or business?
- Did you advertise for potential customers
- Did you attempt other marketing to potential customers
- Did you have sales but just were not paid in 2023

Re: Start Up Costs

Mike9241 — Fri, 09 Feb 2024 21:17:24 GMT

if the business was active in 2023, since the SUE were less than $50K you can deduct $5000 in 2023 and amortize the balance over 180 months starting with the month the business began. the fact the business had no revenue is irrelevant. The $5K + amortization will offset other income on your return.

Re: Start Up Costs

jemmadky — Fri, 09 Feb 2024 21:21:05 GMT

Yes, the business was actively marketing and pursuing leads. Thank you for your answer!