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.
