Series 22: 2.2.2.2. Start-up And Organizational Costs

 2.2.2.2.  Start-up and Organizational Costs

Start-up and organizational costs may be expensed in one of two ways. They may be capitalized and treated as part of the cost of the related property. Or, they may be amortized over 15 years starting when the property goes into service. The choice must be made by the business in the year the property begins to generate revenue. The election is irrevocable. When start-up expenses amount in total to $60,000 or less, the business may deduc