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Tax Year Prior to 2020: I started an LLC, and put cash into an account up front. Is this considered a startup expense?

The amount was money I put into a bank account to cover expenses before any income came in.  Is it only what I spent that I can use as startup expenses, or can the amount I put into the account (minus any spent on startup) also qualify.  The money has never been taken out of the account.

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Tax Year Prior to 2020: I started an LLC, and put cash into an account up front. Is this considered a startup expense?

Only the actual expenses you paid for can be counted and deducted.  The date you "opened your doors" for business is your start date. This is the date you could receive revenue, whether or not you actually did receive any. Your expenses prior to that are Start Up Costs. 

"Business start-up and organizational costs are generally capital expenditures. However, you can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred after October 22, 2004. The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Any remaining costs must be amortized.

Start-up costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business.       Organizational costs include the costs of creating a corporation. "

Note: You can elect to deduct or amortize certain business start-up costs. Refer to chapters 7 and 8 of Publication 535, Business Expenses

How to get there in TurboTax:

While inside the software and working on your return, type start-up expenses in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to  start-up expenses.  Select that to get to the general area.  

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