Question

Can I deduct legal fees as a startup cost if my attorney billed me after my business start date?

Forum|Forum|2 years ago
April 7, 2024
1 reply
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I started a small online business and had an attorney create Terms and Conditions, Privacy and a Partnership agreement. I paid him after my start date. Can they still be entered on TT Home and Business as a startup cost? When I entered it, TT kicked it out stating the expense was after my start date.

TurboTax Online

PatriciaV

Employee

Since the legal services relate to creating your business, the expense may be reported as startup costs. Use the date your business started to avoid the TurboTax limitation. However, you may expense up to $5,000 in startup costs in the year that your business starts instead of amortizing the cost over several years.

Note that a partnership files a separate return (available in TurboTax Business). You would not report a partnership in TurboTax Home & Business.

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D

deanadkAuthor

Thank you so much for replying! As I stated in my question, I paid the attorney AFTER my start date which is why TT kicked the legal payment out. How do get around that? The attorney billed me after my business start date in 2023 and I'm still receiving bills on into 2024 due to revisions. Since all payments were made after my start date how do I enter it into TT so it doesn't kick it out?

Thanks!!

DK