Expenses before your business starts
Up to $5,000
Can You Write Off Expenses Before Your Business Starts?
Short answer: You can deduct up to $5,000 of startup costs in the first year, with the rest spread over 15 years.
The $5,000 shrinks once startup costs pass $50,000.
Records to keep: Keep receipts, 1099s or W-2s, a mileage log, and a note of the business purpose. W-2 employees should ask about employer reimbursement.
BW-B23-00057
low risk
Expenses before your business starts
Typical range: Up to $5,000
Remote Workers / Freelancers / Consultants
Other Expenses
Write-Offs by Job
You can deduct up to $5,000 of startup costs in the first year, with the rest spread over 15 years.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
You can deduct up to $5,000 of startup costs in the first year, with the rest spread over 15 years. The $5,000 shrinks once startup costs pass $50,000.
Category
- Write-Offs by Job
job question
search demand 2026 b23
freelancers
freelancer taxes