Write off your business startup expenses

Business start-up expenses are generally capital expenditures, but you can elect to deduct up to $5K of business start-up costs on your tax return. If your total startup cost exceeds $50K , the $5K deduction is reduced by the amount exceeding $50K. The remaining portion must be amortized. Keep in mind that certain expenses must be amortized over 5 years, including legal expenses and expenses for setting up a business structure (LLC, etc...)

Start-up expenses are incurred while creating an active trade or for investigating the creation of a business or trade. To find out more about common start-up expenses that you can deduct, take a look at RealTaxTips.com. It?s a forum for real estate investors to learn how others are saving money on their real estate investments, and pick up new tips on saving on taxes.

Niman Singh
Community Relations Director TReXGlobal.com
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