- 195 - Start-up expenditures - LII Legal Information Institute
Except as otherwise provided in this section, no deduction shall be allowed for start-up expenditures the remainder of such start-up expenditures shall be allowed as a deduction ratably over the 180-month period beginning with the month in which the active trade or business begins
- Deducting startup and expansion costs - The Tax Adviser
A corporation can deduct up to $5,000 of business startup costs under Sec 195 The $5,000 deduction is reduced dollar for dollar (but not below zero) by the cumulative amount of startup costs exceeding $50,000
- Part I Section 195. –Start-up Expenditures (Also §§ 162, 263; 26 CFR 1. . . .
Section 195(b) provides that start-up expenditures may, at the election of the taxpayer, be treated as deferred expenses that are allowed as a deduction prorated equally over a period of not less than 60 months (beginning with the month in which the active trade or business begins)
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