Solved: Should I file start up costs for a small start up business if I haven't started earning money yet?
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seabea7
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Should I file start up costs for a small start up business if I haven't started earning money yet?

 
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WillK
Level 9

Should I file start up costs for a small start up business if I haven't started earning money yet?

Any startup costs are not deductible until the business begins operations. You can deduct $5,000 of your start up costs on the tax return the year your business is operational. Anything above and beyond $5,000 gets amortized over 180 months. Click here to read more about that: https://www.irs.gov/publications/p535/ch08.html

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WillK
Level 9

Should I file start up costs for a small start up business if I haven't started earning money yet?

Any startup costs are not deductible until the business begins operations. You can deduct $5,000 of your start up costs on the tax return the year your business is operational. Anything above and beyond $5,000 gets amortized over 180 months. Click here to read more about that: https://www.irs.gov/publications/p535/ch08.html

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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