Writing Off Business Startup Costs

One of the benefits of starting a business is the ability to write off your start up costs as business deductions. However, many people feel that too many deductions send up a red “audit” flag to IRS. It can definitely be confusing to try to navigate what you can and cannot write off in regards to your start up costs, but Startup Nation as a great checklist that can get you off on the right foot. Here is an abbreviated version of their list:

• Track your business startup costs – begin at the beginning.
• Track your organizational costs.
• Take an upfront deduction if you qualify.
• Depreciate your initial equipment and furniture.
• Get a tax benefit for merchandise you first bought for yourself.
• Have a lot of startup costs? Put off what you can.