Expenditure amount, is that that amortize value for the year or total expense of the year I want to amortize?

[johntkerich7203]

I am doing a Shedule C for the first time and Turbotax is wants me to fill out the field value for "election to amortize startup costs expenditure amount must be entered".   I want to amortize over 5 years but I am not sure what I should be entering here.   Example:  my startup expenses for 2023 is 5000, I input 1000 for my expenses in Shedule C because I wanted to break it into 1000 for 5 years of taxes.   So is it asking me to input 1000 (amortize) or my real expenses for 2023 of 5000?   I assume it wants 1000 and not 5000 since it not asking how many year to spreed it out.   Is this correct?  I hope I was not suppose to put in the 5000 in the schedule C expense supplies vs. the 5000/5=1000 I did put in.

Also, if this is wrong, how do it find this field again to fix it?

[PatriciaV]

In TurboTax Home & Business, Startup Costs have a separate line under Business >> Business Income and Expenses >> Business Expenses. 

Up to $5,000 of startup costs paid or incurred can be deducted if the total startup costs incurred don't exceed $50,000. An election can be made to amortize costs in excess of $5,000 over a period of 15 years. The IRS sets this rule -- you cannot choose a different amortization period.

1. On the Startup Costs line, click Start/Update to begin.
2. If you have already entered costs under this topic, you can either Edit this entry or Add Another Startup Cost. Assume you are entering for the first time.
3. Enter a description (legal costs, for example), the amount, and the date you paid this expense.
4. On the Startup Cost Summary page, click Done.
5. On the page "How much of your costs do you want to expense for 20XX?" note the message below the header, then enter up to $5,000 to expense this year.
6. Click Continue.
7. You'll see "Startup Costs Summary" that displays how much you are deducting this year and what will be amortized over the next 15 years.
8. Click Continue to return to the Business summary page.

If you have entered these costs under another topic, you will need to update that section and delete the entry you made.

[johntkerich7203]

I am confused by your response.   My example was under the expenses supplies list by catalogue I have $5000 for the year total.   I want to amortize over 5 years the $5000.  Under the expenses supplies for 2023 do I put in the real $5000 total and then in the "election to amortize startup costs expenditure amount must be entered" I put $1000 which will tell it I want to spend the $5000 over 5 years or do I divide the 5000/5 and input $1000 for the 2023 and then for "election to amortize startup costs expenditure amount must be entered" I say $1000 again.  Then I assume I do this again each year for the next 4 years and include an extra in $1000 of expenses.   It reads like you are saying I did it wrong and should be putting in the $5000 expanse supplies and this "election to amortize startup costs expenditure amount must be entered" is telling the Fed I want to divide the 5000/1000 to get 5 years amortized costs.  Is this what you were trying to say?  Think about it that make sense, but is it right?

[PatriciaV]

No, do not enter your startup costs under business expenses. The message you see about amortization is saying that you entered this cost in the wrong place.

The IRS rules allow you to deduct up to $5,000 of startup costs in the first year. Any amount that you do not deduct in the first year MUST be amortized over 15 years. You cannot choose to amortize these costs over a shorter period of time.

Follow the instructions provided earlier to correctly report your startup costs.