Startup Cost Amortizer

Estimate your Year 1 Deduction vs. 15-Year Amortization. Optimized for IRS Section 195 & 248 rules.

Note: Figures are estimates for simulation purposes only. Not official tax advice.

Business Timeline

Start Date (Active Trade/Business)

The date you officially opened your doors or website to the public.

Expense Categories

Startup Costs (Sec 195) Before Opening

Marketing, analysis, training, travel.

Organizational Costs (Sec 248) Entity Creation

Legal fees, incorporation state fees.

Tangible Assets (Sec 168k) Bonus Dep

Computers, Furniture, Machinery.

Tax Knowledge Base

The $5,000 Rule (IRS Sec 195)

The IRS allows you to deduct the first $5,000 of startup costs immediately. However, if your total costs exceed $50,000, that deduction is reduced dollar-for-dollar. The rest is amortized over 15 years.

Visualizing the $50k Phase-out threshold

Startup vs. Organizational Costs

These are two separate "buckets," effectively giving you two $5,000 limits if you categorize expenses correctly.

Startup Costs

• Market Research
• Training Wages
• Pre-opening Ads

Organizational

• Legal Fees
• State Filing Fees
• Registered Agents

Total Year 1 Deduction

$0.00

Reduction in taxable income

Category	Deduct Now	Deferred
Startup	-	-
Organizational	-	-
Assets	-	0.00

Remaining Balance Amortized: $0.00 ($0.00 / mo over 15 years)

Validate Your Deduction

Misclassifying "Startup" vs "Asset" costs is a top audit trigger. Send this to our CPA team for a safety check.

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