New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

How do I deduct start-up and organization costs?

Answer

If you enter start-up and organization costs in the asset module, use the Method/Life Wizard to select Intangible asset (IRS Code Sec 195) or Intangible asset (IRS Code Sec 248) in the Method field. Enter the amount deducted in the Start-up/Org Exp field. If you do not use the Method/Life Wizard when you enter the start-up and organization costs, select the respective amortization section from the drop-down list in the Amortization section field in the Other tab for the asset.

If you do not use the asset module to enter start-up and organizational costs, enter the amount deducted for the start-up and organizational costs in the statement dialog attached to the Amortization detail field in Screen 4562.

The total amount deducted for the start-up and organization costs transfers to the Other deductions line on the tax return.

Per IRC Regulations 1.195-1 and 1.248-1, a formal election to deduct the start-up and organizational costs incurred after September 8, 2008, is not required.

Related topic: 1120 frequently asked questions

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