Start Up and Organization Costs - how to set up

[Mel7777]

Hello!  I have a partnership with less than $5K of start up and $5K of organizational costs.  I've been reading through the boards and I'm not sure how best to enter. 

Intuit suggests using the IRS election form and then adding to Other Deductions, although I read from someone here that the election is no longer needed.  When I enter the Start Up or Organizational costs as an asset, with a classification of L, and note the IRC section as 195, the depreciation report shows it amortizing over the 15 years but it's less than $5K so we can take it all in one year. 

Would someone be able to coach me how to enter these in ProSeries?

Thank you for your time and coaching!

[dascpa]

In the Forms icon type in IRC and it'll take you to the IRC Elections Summary. You'll see the organizational and start-up elections there. With doing that you can just list them as ordinary expenses in the tax return, not in the amortization worksheets.

Some people may say if you just expense them without the formal elections they would be considered "deemed elections". I add the formal ones just to be sure.

[Mel7777]

Thank you!  So submit the election and include on line 21? There's no tracking then on the depreciation/amort schedule - any idea if this matters?  

[sjrcpa]

I track them and override the amortization deduction to get the expense.

But I don't use ProSeries which I understand balks at some overrides for efiling.

[TaxGuyBill]

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@Mel7777 wrote:

 Intuit suggests using the IRS election form

 then adding to Other Deductions

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You are correct that the Intuit so-called guidance is outdated and/or wrong.  Much of that so-called guidance is based on law from 20-30 years ago.

As you said, just add it to "other deductions" for the business.

Only add an Asset Entry Worksheet for amounts OVER the allowable amount.

[Mel7777]

Thank you!!!