Amortizing start-up expenses

Mad_Hatter · ‎March 26, 2021

This is my first time using TurboTax Business 2020 to file my business tax returns. I need to enter startup costs that were on my tax return last year and will be amortized over 180 months. If I enter them as a deduction, TurboTax doesn't understand they were incurred last year and some of the expense has been deducted. I'm not filling out the Balance Sheet because I am a smaller business and it's not required. Where do I enter the start up costs so it is accurately tracked and deducted?

JotikaT2 · ‎March 30, 2021

They should actually be entered under the Assets section so you can amortize those costs. This will also ensure they are carried forward each year and amortized accordingly.

You can do this by logging back into your TurboTax Business account.

Select the Federal Taxes tab
Select Deductions
Scroll down and select Assets under the section titled Depreciation of Assets
Proceed to enter your information as prompted. You will eventually be able to select Other and mark your asset as being startup costs as shown in the sample below.