Enter start-up / organizational expenses
To enter start-up / organizational expenses, take the following steps.
- Open the client and, if necessary, select an activity folder.
- In theAsset Listwindow, selectAddand add an asset, or choose the asset and selectModify.
- If you're adding an asset, enter the asset's description, date in service, and information for any of the association fields that displays in theAsset Detailwindow.
- In theCost/Basisfield of the Tax column, enter the start-up / organizational cost, including the deductible amount.
- Select
or press F6 to open the Method/Life Wizard. - In the Method/Life Wizard, select the appropriate intangible asset class: Intangible asset (IRS Code Sec 195 - start-up expenses), Intangible asset (IRS Code Sec 248 - organizational expenses (1120, 990)), or Intangible asset (IRS Code Sec 709 - organizational expenses (1065 only)).
- Go toStart-up/Org Expin the Tax column and enter the deductible start-up / organizational expense amount.noteIf theStart-up/Org Expfield doesn't display in theDepreciationtab, select theOthertab and select 195 - Start-up Expenses, 248 - Organizational Expenses (1120, 990), or 709 - Organizational Expenses (1065 only) from theAmortization sectionfield.
