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How to report start-up and organizational costs on 1120S?

How to report start-up and organizational costs on 1120S?
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Answered in 7 minutes by:
3/9/2018
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
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Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
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Customer reply replied 5 months ago
Ok. Thanks

If the start up and organizational cost are under $5,000 each, then you would deduct the expenses in the proper category on page one of the 1120S.

Approximately what was your total start up and organizational cost?

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Customer reply replied 5 months ago
I have about 1 K in organizational and over 9 K in start up. Where exactly on first pg? I will check

Section 7- 21 are where you will find your deductions.

For example Line 11 Rents, Line 12 taxes and licenses, 16 advertising and line 19 "other deductions."

Here is a link to the 1120S for you to review.

https://www.irs.gov/pub/irs-pdf/f1120s.pdf

Please let me know your follow up questions.

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Customer reply replied 5 months ago
I understand, I was just wondering if I should group the expenses related to start up and organization. I see that I need to do it just like any other expenses, assigned them to proper line on 1120S. I will take start up cost over 5K and will amortize it over 180 months. Please confirm my stmt.Also, do I mick "amortizable intangible" on asset entry sheet? and how about date since costs vary?

Yes, essentially the cost are like other expenses until you exceed $5K, then those start up or organization cost need to be amortized over 180 months, as you stated.

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You may total the amount of amortizable intangible assets. The start date is the date the assets were placed into service or the business started in this case.--please let me know if this answered your question.

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Customer reply replied 5 months ago
you answered and confirmed!Thank you, Chad!Enjoy your day!

Thank you!

Have a great day

Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,755
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
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