Entrepreneur..ish!

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

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.

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

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.
   References :
mikeleibo on March 11th, 2010
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.
   References :
   http://www.irs.gov/pub/irs-pdf/p535.pdf
   chapter 8
tma on March 11th, 2010

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