How to Correctly Add Startup Expenses in ProSeries

Forum|Forum|1 year ago
June 23, 2025
2 replies
25 views

Company X is in the startup phase, paying rent and legal fees before operations commence.

I've read a few posts, and it sounds like the election must be made in ProSeries under IRC 248, and the expenses must be added on that tab.

However, it also looks like the expenses need to be added again on the "Other Expenses" section of the return.

Can someone confirm?

ProSeries Professional

Just-Lisa-Now-

Intuit Community Champion

Once the business is operating, you can deduct start up expenses that were incurred prior to the business being open

https://www.irs.gov/publications/p583#en_US_202501_publink1000253143

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

T

troyAuthor

Level 5

You are allowed the $5k of deductions, and I am trying to determine how to properly enter in ProSeries

sjrcpa

Level 15

Only once they have actually started operating the business. Prior to that, everything is capitalized on the Balance Sheet.

The more I know the more I don’t know.

T

TaxGuyBill

Level 15

Startup Expenses are Section 195. No separate election form is required.

Just enter the up-to-$5000 as an other expense and call it Startup Expenses. If there there are additional expenses, open an Asset Entry Worksheet and Amortize those expenses under Section 195.

T

troyAuthor

Level 5

Can you help me understand the difference between what this is?

https://accountants.intuit.com/support/en-us/help-article/form-1040/amortization-organizational-expenses-start-costs/L5owd5Kwj_US_en_US?srsltid=AfmBOoppKn5YS_Mmqr7HU6DCzzNtRv5VuPlgPFhJbI5kRXSMtQ25rTCY

sjrcpa

Level 15

Organizational expenses are those incurred to form the legal entity - legal and filing fees.

The more I know the more I don’t know.

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