Client expended a total of less than $5,000 for start up costs in a new S-Corp in 2013. A portion of the start up costs were Capital Expenditures (Equipment) and the remainder was licensing, advertising and supplies. Are the Equipment purchases lumped together (included) with all other start up costs? Or, is equipment listed separately under Section 179 rules? All comments appreciated.
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When start up costs are less than $5000, I have listed them as Start up cost and the amount as a deduction without breaking it down further on the form. However in my notes I keep the details.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR -
Equipment
...needs to be depreciated when placed in service. How and when it is paid for does not matter. Equipment is certainly not part of start up costs and has to follow it's own rules.Comment
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