Tax Planning for your Business Startup Expenses

JC Leahy

If your business began in 2012, you can elect to deduct up to $5,000 of start-up costs paid or incurred after October 24, 2004, and before and after 2010, and up to $10,000 of start-up costs paid or incurred in 2010. The $5,000 limit is reduced (but not below zero) by the amount by which your total start-up costs exceed $50,000 and the $10,000 limit is reduced (but not below zero) by the amount by which your start-up costs exceed $60,000. Start-up costs which are not deductible are amortizable over a 15 year period.