Where to put start up expense on 1065?

Question

where do you put up to 5k in start up expenses on 1065? I only have 500 in expenses. please help, is it a schedule k item or page 1 item? thanks,

Answer 1

Hi, tycoon! Start-up costs are indeed a Page 1 deduction, to be reported on Line 20 ("Other deductions") as the others stated. Sch. K is used to calculate the distributive shares for preparing the K-1s; the start-up costs will already have been deducted, as the total from Page 1, Line 22 is then carried to Sch. K, Line 1.

But remember! You can't merely put the costs on Line 20; you MUST also attach a statement to the return which formally elects to expense the costs immediately rather than amortizing them over 15 years. The statement could be typed out on a separate page and read something like this:

~~~~~~~~~~~~~~~~~~~
Election to Expense Start-Up Costs

Pursuant to IRC Section 1.195-1(b), the Taxpayer hereby elects to expense start-up costs in the current year for the amount stated below:

Description of Costs:
Amount to be Expensed: $500
~~~~~~~~~~~~~~~~~~~

The links below provide further details. Good luck! :-)

Answer 2

It goes on line 20, along with other items on your statement.
You can deduct up to $5,000. in one year of your start up cost or amortize it over 180months. (there are other limits) You'd also list (on your statement) legal fees, utilities, insurance, things that won't go elsewhere on 1065 pg one.

Get the instructions for form 1065 and K1, read them, then read them again.

The K1 form is for each partner, shows their share of income or loss or other items that will go on their personal tax return

Answer 3

If you're talking about start up costs for the partnership, then you book it as licensing expenses or perhaps miscellaneous since it's a one time and small amount.

The expense belongs to the partnership, not to an individual partner, so it's not a K-1 item.

Answer 4

Other expenses.