[startupcfo]

See Sim #21

In this example, the business only had $1,570 worth of startup expenses that occurred before the business opened its doors to customers. So on line 27, the taxpayer writes in 1570. I believe IRC 195 allows businesses to deduct the first 5K, and then spread out the next 50K of startup costs over the next 180 months.

Let’s assume the business had 23,000 of startup expenses. Now that’s 5,000 right off the bat, and 100/month for the first 12 months = 5000+1200 = 6200

How would you go about in filling out the tax form? Show 5000 and mark the depreciation schedule elsehwere? Or show 6200? Or show 23,000 and let the IRS figure out the schedule?

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