Business Starting Grants

I have business startup costs from a real estate LLC that span two tax years. How do I handle my taxes?

Public Comments

1. You can "legally" take the expense in the year it was incurred. If you incurred a loss, you can roll it over to the following year.
2. Business start up costs should be capitalized and amortized ratably over 15 years. However, you can elect to expense up to $5,000 of these costs. The $5,000 deduction gets reduced if you have start-up costs in excess of $50,000.