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Can business start up costs be depreciated? I have a client who spent $30K in material and repairs to get the business operational.

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Terry53029Answer

Intuit Community Champion

You can expense up to $5000, and you need to amortize the balance up to a max of $50000. here is a link for a great article with details.

https://www.thetaxadviser.com/issues/2017/sep/deducting-startup-expansion-costs.html

Intuit Community Champion

Intuit Community Champion

See this link to get started.

https://www.irs.gov/newsroom/heres-how-businesses-can-deduct-startup-costs-from-their-federal-taxes

chiodoincAuthor

Level 5

Thank you. I did read this article. I just wasn't sure if I can use the description of start up cost and just use 15 yrs. or if I had to use a breakdown or how exactly to report this.

Intuit Community Champion

Answer

Intuit Community Champion

You can expense up to $5000, and you need to amortize the balance up to a max of $50000. here is a link for a great article with details.

https://www.thetaxadviser.com/issues/2017/sep/deducting-startup-expansion-costs.html