How to Make the Election to Deduct Start-up Costs and Organization Costs

You elect to deduct start-up costs or organization costs by claiming the deduction on the income tax return (filed by the due date, including extensions) for the tax year in which the active trade or business begins.

If you timely filed your return without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions).

Clearly indicate the election on your amended return and write the following:

  • Filed pursuant to section 301.9100-2

The election applies when computing taxable income for the current tax year and all subsequent years.

QuickBooks Self-Employed
For Freelancers and independent Contractors

- Organize your financial data into one central accounting system on the cloud
- Software kept up to date.
- Your data kept secure
- Anytime, anywhere data access.
- Pay your quarterly estimated taxes online.
- Export Schedule C to TurboTax at year-end for faster filing.
- Save up to 50% off QuickBooks Self-Employed. Track every deduction! Start your free trial now!

Have an accounting or bookkeeping question? Email it to me.