Currently, startups can deduct in the first year of business up to $5,000 of costs incurred before they opened their doors. The deduction is reduced dollar-for-dollar for startup costs exceeding $50,000. The American Innovation Act (H. R. 1778) would raise the deduction limit to $20,000. It would also raise the reduction threshold to $120,000. Amounts that can’t be deducted immediately can be amortized over a 180-month period beginning with the month after the business begins. #IdeaoftheDay
