Start-up costs are amounts the business paid or incurred for creating an active trade or business, or investigating the creation or acquisition of an active trade or business. This recovery period starts with the month the business begins to operate active trade or as a business. They can recover the costs they cannot deduct currently over a 180-month period. Generally, the business can recover costs for assets through depreciation deductions.įor costs paid or incurred after September 8, 2008, the business can deduct a limited amount of start-up and organizational costs. When starting a business, owners should treat all eligible costs incurred before beginning to operate the business as capital expenditures that are part of their basis in the business.
0 Comments
Leave a Reply. |