The National Directory of Certified Public Accountants

Ask A CPA - Business Start-ups

Are My Business Start-Up Costs Deductible As Current Operating Expenses?

Expenses incurred or paid before a business starts operations are considered capital expenses. In recent years up to $5,000 ($10,000 in 2010) of the first 60,000 were able to be elected to be expensed with the balance capitalized over 180 months. There are limitations if the total costs exceed a certain amount. $60,000 in 2010)

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