Deduct startup and organization costs
UltraTax CS automatically transfers the startup and organization costs that you enter in the asset module directly to the other deduction line of various tax forms. Follow these steps to deduct startup and organization costs.
- To enter the startup and organization costs deduction in the asset module, use the Method Life wizard to selectIntangible asset (IRS Code Sec 195 - start-up expenses)orIntangible asset (IRS Code Sec 709 - organization expenses (1065 only)).
- If you don’t use the Method Life wizard, select the amortization section from the dropdown in theAmortization sectionfield in the Other tab. Enter the amount deducted in theStart-up/Org Expfield.
- If you don’t use the asset module and instead enter summary information in the 4562 screen, enter the amount deducted for the startup and organization costs in the statement window for theAmortization detailfield. Enter the amount deducted in the Expense Deduction column, and enter195or709in the Code Section column.
note
Per Regulations sections 1.195-1 and 1.709-1, a formal election to deduct the startup and organization costs incurred after September 8, 2008 isn't required.
