Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Depreciation

Start-up and organization costs deductions

If you enter start-up and organization costs in the asset module, use the Method/Life Wizard to select
Intangible asset (IRS Code Sec 195)
 or
Intangible asset (IRS Code Sec 248)
 in the
Method
 field.
Enter the amount deducted in the
Start-up/Org Exp
 field. If you don't use the Method/Life Wizard when you enter the start-up and organization costs, select the respective amortization section from the dropdown in the
Amortization section
 field in the Other tab for the asset.
If you don't use the Asset module to enter start-up and organizational costs, enter the amount deducted for the start-up and organizational costs in the statement window attached to the
Amortization detail
 field in the 4562 screen.
The total amount deducted for the start-up and organization costs transfers to the Other deductions line on the tax return.
Per IRC Regulations 1.195-1 and 1.248-1, a formal election to deduct the start-up and organizational costs incurred after September 8, 2008, is not required.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1120 Corporation
  • Subject: Depreciation
Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close