Can freelancers deduct amortize startup costs?
Business_Expensesfreelancerssmall businessconsultantsindependent contractors
Freelancers can deduct up to $5,000 of startup costs in the first year of business, provided total startup costs do not exceed $50,000. Any remaining startup costs must be amortized over 180 months. Startup costs include expenses incurred before the business begins, such as market research, advertising, and training. If total startup costs exceed $55,000, the initial $5,000 deduction is reduced dollar-for-dollar by the amount over $50,000.