Start-up and Organization Costs

Start-up costs are business costs that are incurred for training, travel, professional services, market surveys before the business start date.

Organization costs are amounts paid or incurred to create a corporation or partnership business entity before the entity starts.

The first $5,000 of start-up costs and the first $5,000 of organization costs can be deducted in the year incurred.  The deduction is phased out dollar-for-dollar when start-up costs or organization costs exceed $50,000.  The remaining amounts are amortized over a 180 month term, starting with the month the active trade or business begins.

The above information is of a general nature only and should not be relied upon for specific situations.  

Call Marlies Y Hendricks CPA PLLC at either 716-694-3500 or 910-769-8730 as required to set up an appointment.