Skip to main content

Solutions

Products

Recommended products

Questions? We are here to help.
Contact us

Purchase

Questions? We are here to help.

Resources

Deductions

Enter startup expenses

Do the following to enter startup expenses paid for a new trade or business.
  1. Go to the
    Business
     or
    Farm
     folder.
  2. Select the
    Asset
     tab.
  3. Add
     or
    Edit
     an asset and enter the cost basis.
  4. Select
    Method/Life Wizard
     in the asset module to open the wizard.
  5. Select
    Intangible asset (IRS Code Sec 195)
    . UltraTax CS automatically enters the asset life for startup expenses under IRC section 195 (15 years).
  6. Enter the total of deductible expenses in
    Start-Up/Org Exp
    . If you don’t use the Method/Life Wizard when you enter startup expenses, enter the respective amortization section in
    Amortization section
     in the
    Other
     tab.
    note
    • If you don't use the asset module to enter startup expenses for the trade or business, enter the asset information and the expense deduction amount in the statement window. This window is linked to the
      Amortization detail
       field in the
      4562
       screen.
    • The total amount deducted for the startup expenses will transfer to the other expenses line on Schedule C or F. If there are startup expenses in excess of this deduction, they’ll be amortized over 15 years and report on Form 4562, Part VI.
    • Per IRC Regulation 1.195-1, there's no need for a formal paper election statement to deduct startup expenses incurred on or after September 7, 2008.

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1040 Individual

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close