Writing Off Startup Costs: Don't Miss Out
Deducting startup expenses The government allows businesses to write-off $5,000 of startup expenses. This $5,000 deduction is reduced by the amount that your total startup expenses exceed $50,000. Any startup costs that are not deducted in the current year can be amortized ratably over a 15-year period, beginning in the month you start operations. You can elect to forgo this election and make a different election to capitalize your startup costs. The costs then become part of