Are construction costs considered "startup" costs?

[BG2015]

I have an LLC I formed in April 2015 to acquire land, build, and lease as a commercial property. I closed on the land in Feb 2016 and construction will start in the next few weeks. I incurred $20K in 2015 for architectural and legal fees. Do I list the start date of the company as April 2015 when I formed the LLC, or is it when the building is completed and I start leasing? Are any of these construction costs considered "startup" costs?

[BG2015]

TurboTax does not allow me to enter legitimate start-up costs after the start date (formation of the LLC). Can I choose a later start date (before any income was received) to include those start-up costs, or should I just include it all in partnership expenses?

[ToddL]

I updated by answer to add better clarity. If the "start-up costs" interview is asking for a "start date", that would be the date you "opened your doors for business (put space on the market for rental) or started generating income (signed rental contract)".

[ToddL · Accepted solution]

The "start date" of the company would typically be the date you formed the LLC; it  is not when the building is completed or you start leasing.

For purposes of "start-up costs", however, the "start-up date" would be the date  you open your doors or start generating income).

Startup costs are the expenses incurred during the process of creating a new business.

All businesses are different, and can require different types of startup costs.

However, there are a few generic costs that are common to all business types:

1. Research expenses
2. Insurance, license and permit fees
3. Equipment and supplies
4. Advertising and promotion
5. Borrowing costs
6. Employee expenses
7. Technological expenses

Generally, the costs to construct a building are not considered "startup" costs - they are expenses incurred during the process of creating a business asset. 

It is arguable whether "architectural fees" would be a start-up cost for your business. While they are specific to the creation of a business asset, they are also necessary in deciding whether or not to proceed with the investment ("research"). Plans are necessary to determine costs, and costs determine economic viability.

"Legal fees" to incorporate or advise on general business matters (e.g. zoning issues, property search, contact negotiation) could reasonably be considered start-up costs for this type of business.

See Startup Cost Tax Deductions – How to Write Off the Expense of Starting Your Business for additional information.

Also, see Business Start-Up Costs in IRS Publication 535.

[BG2015]

TurboTax does not allow me to enter legitimate start-up costs after the start date (formation of the LLC). Can I choose a later start date (before any income was received) to include those start-up costs, or should I just include it all in partnership expenses?