Business Startup Costs: IRS Deduction and Amortization
By IRS Small Business Office | 6 min read
Maximize business startup deductions with IRS guidance. First-year deductions and amortization rules.
New businesses can deduct startup costs according to IRS rules. First year: Deduct up to $5,000 in startup costs (phases out for costs over $50,000), Remaining costs amortized over 15 years, Organizational costs treated similarly. Qualifying startup costs include market research, advertising, employee training, and professional services. Keep detailed records and receipts for all startup expenses.\n\n**Related Resources**\n- [Financial Planning Tools](/tools)\n- [Budget Calculator](/budget-planner)\n- [Credit Guide](/category/Debt%20%26%20Credit)\n- [Money Saving Tips](/category/Save%20Money)