Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Business Owners: Will Startup Cost Deductions Change in 2025? #ProfitablePainter

Name: Painting Business Owners: Will Startup Cost Deductions Change in 2025? #ProfitablePainter
Uploaded: 2025-02-24T14:15:00+00:00
Duration: 43 s
Channel: Daniel Honan
Description: In this brief informational segment, the speaker explains the existing tax treatment for startup costs incurred before a business generates revenue: such…

24 Feb 2025 · 1 min

Watch on YouTube

0:43

In this brief informational segment, the speaker explains the existing tax treatment for startup costs incurred before a business generates revenue: such costs (legal, accounting, asset purchases) must be amortized over 15 years, with a $5,000 immediate expense exemption. He outlines a proposed legislative change that would raise the immediate write‑off limit to $50,000, allowing most small businesses—like painting contractors—to expense these costs right away, eliminating the need for long‑term amortization and reducing upfront financial barriers for new entrants.

Chapters

you've heard talked about the increased deduction for startup costs. This really only applies when you're first starting your business before you have revenue. You have startup costs, maybe legal fees, accounting costs, purchasing assets. These things have to be amortized and expensed over the first 15 years. The exception to that is you can write off $5,000, and this talk has been of increasing that to $50,000. So if that happens, most small businesses won't have to worry about amortizing startup costs. They'll be able to expense those things immediately. That would certainly help lower the upfront costs for people who are trying to get off the ground.