don't know what to enter on "startup costs" in turbotax business on my second year of filing business taxes.
If I put original startup costs it counts them as I never put them for the previous year which is not true. If I don't put them, I can't see ANY amortizations for them for this year. According FORM 4562 last year I put 10 083 as total, deducted 5K in that year and then selected 15 year deduction for the rest $5083. What do I do for this year???
As for start up costs if you filed with TurboTax last year the amortized cost should automatically be carried forward to this years return. If they do not carry forward then you will need to enter the annual amortized amount manually.
The business startup deduction can be claimed in the tax year the business became active.
However, if you anticipate showing a loss for the first few years, consider amortizing the deductions to offset profits in later years. This would require filing IRS form 4562 in your first year of business.
You can choose from different amortization schedules, but once you have selected a schedule, you can't change it.
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