Discussion:Timing for making Election to Amortize Start Up
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Discussion Forum Index --> Tax Questions --> Timing for making Election to Amortize Start Up
| 7 April 2006 | |
| Client had various start up and organizational expenditures in 2005 (less than $50,000) for newly formed S Corp, getting ready to open mid 2006. Her total startup costs will be less than $50,000.00. When she actually starts the business in 2006, will write off $5,000.00 of start up and amortize the rest over the required 15 years. Do I need to make the election to amortize on 2005 return, or 2006 when the business actually starts? | |
| 14 February 2008 | |
| Would it then be proper to show the start-up or organizational expenditures on the initial balance sheet of the corporation but not make the election to amortize or expense until the business actually begins operations?
Thanks in advance. | |
| February 14, 2008 | |
| Yes that is correct WBR. Put it on the BS as an intangible asset. Make the election on the return of the year when substantial business activities begin. | |
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