What Costs Can a Startup Business Deduct?


According to the IRS, start-up costs are eligible to be taken as startup tax deductions if they fit into the categories of Creating a Business, Launching the Business, and Organization Costs. In addition, startup costs are amortizable over a 180 month (or 15 year) period if the costs meet these two criteria:

  1. If you paid for or incurred the cost to operate an existing active trade or business in the same field / industry as the one you entered into and,
  2. It is a cost you paid for or incurred before the day your active trade or business began.

For a full discussion on startup tax deductions, visit our blog.

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