How Do I Claim Startup Expenses?
If you started a business last year and incurred some expenses before you officially opened your doors, you may be entitled to deduct certain startup and organizational costs on your tax return this year. But, the IRS has strict guidelines you must follow to claim them. Here’s a look at the rules.
What are the deductions for starting a business?
The $10,000 deduction for business start-up costs is reduced by the amount your total start-up costs exceed $60,000. The $5,000 deduction for organizational costs is reduced by the amount your total organizational costs exceed $50,000.
