In TurboTax, there is separate
entry for Start
Up Costs in the Business Expenses section. Once general information and self-employment income is reported, you will arrive at the business expenses section. Select Start up costs - you will be asked to enter your total
startup cost, and the date incurred (which should be before you started your
business). Then, the program will ask you how much you'd like to deduct; the
rest is automatically amortized for you.
You can elect to deduct up
to $5,000 of
start-up costs and amortize the
remainder over 180 months, beginning with the tax year the business begins. The
deduction of $5000 will be listed as “other expenses”, whereas the amortization
will be reported as your depreciation.