In 2022 in Ohio I had a full-time job and started an LLC. My LLC did not generate income. Can I deduct the startup expenses? How do I handle, and which TT product to use?

Forum|Forum|3 years ago
April 8, 2023
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My wife and I are married, and she is also employed full time. We have one dependent child.

TurboTax Online

AliciaP1

If you have not yet earned income prior to 2023, your start-up costs and organizational costs should be accumulating into 1 intangible asset each and cannot be amortized until your business is earning income.

In the first year, you begin earning income, you can elect to deduct $5,000 as Start-Up and $5,000 as Organizational Cost Expense and then amortize the remaining amounts over 180 months. The $5,000 has to be reduced by the amount of total Start-Up or Organizational Costs exceeding $50,000.

For more detailed information see Business Start-up and Organizational Costs.

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