Per IRS Form 4562 Instructions:

Business Start-up and Organizational Costs

You can elect to amortize business startup costs, organizational costs for a corporation, or organizational costs for a partnership.

How to make the election. You elect to deduct the start-up or organizational costs by claiming the deduction on your income tax return (filed by the due date including extensions) for the tax year in which the active trade or business begins. For costs paid or incurred after September 8, 2008, you are not required to attach a statement to your return to elect to deduct such costs. However, for start-up or organizational costs paid or incurred before September 9, 2008, you may be required to attach a statement to your return to elect to deduct such costs. If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Clearly indicate the election on your amended return and write “Filed pursuant to section 301.9100-2.”

Starting a Business

For costs paid or incurred after September 8, 2008, you can deduct a limited amount of start-up and organizational costs. The costs that aren't deducted currently can be amortized ratably over a 180-month period. The amortization period starts with the month you begin operating your active trade or business. You aren't required to attach a statement to make this election. You can choose to forgo this election by affirmatively electing to capitalize your start-up costs on your income tax return filed by the due date (including extensions) for the tax year in which the active trade or business begins. Once made, the election to either amortize or capitalize start-up costs is irrevocable and applies to all start-up costs that are related to your trade or business. See Regulations sections 1.195-1, 1.248-1, and 1.709-1.

To enter the start-up costs in the TaxAct program:

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
2. Click the Business Income dropdown, then click Business income or loss from a sole proprietorship.
3. Click + Add Schedule C to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit).
4. Continue with the interview process until you reach the screen titled Let's get started on business expenses - less common expenses Select Amortization, then click Yes.
5. Continue with the interview process to enter your information, and your current year amortization amount and start-up expenses will be outlined on the summary screen.

Note. If you have already made amortization entries, then you will be brought to the screen titled Business Income - Amortization Review, where you can click Add or Review, whichever is applicable in your situation.

The current year expense and amortization amount will appear on Form 4562 Depreciation and Amortization, Line 42. When you print the return, you will see a worksheet titled "Amortization Expenditure Summary," which will provide a break down of the total costs and how much was elected to be expensed in the current year.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.