American Innovation Act Would Increase Deduction for Start-ups

At present, start-up costs may be deducted in the first year of operations up to $5,000, with excess amounts amortized over 15 years. If start-up costs exceed $50,000, the $5,000 first-year deduction is reduced dollar for dollar by any amount over $50,000 (i.e., no first-year deduction if start-up costs are $55,000 or more). The American Innovation Act (H.R. 7503) would increase the first-year deduction to $20,000. It would also increase from $50,000 to $120,000, the phase-out threshold. Chances for enactment? Who knows? #IdeaoftheDay

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