How to Write Off Startup Expenses in 2024

YES, you can write off startup expenses for a small business. Here's what startup expenses are deductible, how to claim the startup deductions, and what happens if your business fails to actually launch.

Outline:
Intro: 0:00
How write-offs work: 0:40
What are startup costs are deductible? 1:17
How much startup expenses can you deduct? 2:53
How to claim a deduction for starting a business? 4:42
What if you don't launch? 5:25
Watch this next: 5:52

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Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).

[jawsstech]

Man, your explanations and examples are so very clear. I am glad I found your channel. Color me Subscribed!

[michaelolson]

You earned yourself a subscriber. Thank you for putting this together.

[mrs.sutton]

Thanks exactly what I was looking for.

[cw]

Great informative video. I hope you make many more videos on business.
I'm going to start a YouTube channel for travel for a niche group. This info is very valuable. Thanks.

[andymejia]

I need an accountant ASAP first year in business and it’s a lot

[ciacasupreme]

You sound more realistic than what alot of people are saying out there. My question is how come alot of these youtubers make it seem like you could deduct 100%. How can you get to a level of Trump pay only $700 alone in tax.

[iDeveloper]

Great stuff, thanks!

Do you know if startup/organizational costs can include material to start a home-bakery? E.g. a mixer, baking sheets, a laptop to launch a website, is home rent also deductible?

[michaelbacile]

Hey do y’all have a video or info anywhere on general expenses. I’m planning on starting a business within the next year or so and I have very basic business knowledge. It’s going to be a service business with less than 3 employees. No office space. I have a list of things like- machine payment, labor, maintenance, fuel, insurance, profit for growth, consumables. I wanted to make sure I go into it with as many expenses figured as possible

[juliantorres]

What about equipment or software purchased to start the business. Example, a laptop and quickbooks for a bookkeeping business

[e.g]

Great video. But you missed .. how to claim the deduction on 1065 partnership ?
Also. After talking $5k deductions 1st year. Can your also get the amortization starts 1st year as well? Meaning. Let’s say there is 20k stray up cost. Can I take 6k 1st year ( 5k + 1k amortization ). Thank you.

[lindseymml]

So for supplies to start business like printers, desk, chairs, computers, can those be deducted? What category do they fall under?

[kristinecruz]

My LLC was formed in Oct 2021 and I did a filing for that year. Given that it was only 2 months of 2021, Can I still deduct up to 5k of startup costs when I file for 2022?

[ML]

How is “launch” of the business defined, specifically? Is is it your first sale/transaction or a certain threshold in revenue?

[iDeveloper]

How long do you have to claim startup costs after you register your LLC? 1 year?

[michaelsmith]

QUESTION: Would airplane flight training (~$100k) be deductible if I was able to work as a contract-for-hire pilot (1099, or billed through the LLC); and not as an employee at an airline?--Could I roll-over the remaining deduction for 3 years?

[piyushsingh]

Thanks!! Is acquisition of a software tax deductible??

[stupendouslife]

Business start-up cost question 🤔
I bought a truck for $30, 000, this 1st phase of my business failed, I sold the truck for $23, 000 only, is there any tax deduction that I can use for it?

[nc]

I bought my office furniture, laptop and phone in 2022 but did not make money until 2023, can i deduct as start up cost for 2023? Thx

[adomarc]

My wife and I have a single member LLC. We paid for some business expenses with our personal credit card before our business card came in. How do we reimburse ourselves from our business bank account? Do we need to categorize the reimbursement as something specific? We'd like the expenses to be tax deductible as opposed to an owner distribution. We use Wave for accounting.

[yusyaragon]

Hi, I have a question, if the total of start cost are 9, 000 (travel, virtual office, incorporation fees) and in the first yr the business did not have any income. How do you do? Amortized the total amount and just deduct amortization expenses or deduct $9, 000 like expenses. Please, advise.