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Level 2
posted Mar 20, 2021 5:28:55 PM

how to enter start-up costs

Last year was my initial tax return for an S Corp.  The tax return was prepared by an accountant.  I'm entering the return into TurboTax Business.  How do I show this is the 2nd year for amortizing the start-up costs?  It wants to begin amortizing them this year and doesn't understand some amortization was taken last year.

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3 Replies
Expert Alumni
Mar 20, 2021 6:05:03 PM

You enter the Start-Up costs as an asset.  You will use the information from your depreciation worksheet from 2019 to enter the date placed in service for the 2019 tax year and the prior depreciation.  TurboTax will create the correct schedule and include the deduction for the tax return.  

Level 2
Mar 27, 2021 8:11:36 AM

I'm not filling out the balance sheet because it's not required of my small business, so how do I enter it as an asset?

Expert Alumni
Mar 29, 2021 9:36:19 AM

In TurboTax Business, follow these steps:

  • Across the top of the screen, click Deductions.
  • Scroll down to Depreciation of Assets.  Click Start / Update.
  • At the screen Business Asset Summary, click Add An Asset.

This is a separate process from whether you report a year-end balance sheet of your business activity.

That activity happens under Federal Taxes / Balance Sheet.