start-up costs

[Daveed]

Hi, did TCJA effect start-up costs? is incorporation date the day business began or can it be before then?

[mdavolio · Accepted solution]

Hi Daveed,

The Tax Cuts and Jobs Act did not change the treatment of start-up costs.

Please refer to IRS Publication 535, Chapter 8 for a discussion about start-up costs and organization costs. https://www.irs.gov/pub/irs-pdf/p535.pdf

When you start a business, treat all eligible costs you incur before you begin operating the business as capital expenditures which are part of your basis in the business.  For costs paid or incurred after September 8, 2008, you can deduct a limited amount of start-up and organizational costs.

The incorporation date is when the company becomes incorporated in a given state.

Thank you,

Mike D'Avolio

Intuit

[sjrcpa]

Incorporation date is the date the corporation was formed with the state.

Oops - I didn't see that Mike answered this, too.