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How to Take the Deductions. The IRS allows you to deduct $5,000 in business startup costs and $5,000 in organizational costs, but only if your total startup costs are $50,000 or less.If your startup costs for either area exceed $50,000, the amount of your allowable deduction will be reduced by that dollar amount.ow to Take the Deductions. The IRS allows you to deduct $5,000 in business startup costs and $5,000 in organizational costs, but only if your total startup costs are $50,000 or less.
1 Visit IRS.gov and use the Interactive Tax Assistant tool to help determine your standard deduction. 2  File the right forms. 3  To itemize your deductions, use Form 1040 and Schedule A, Itemized Deductions. 4  You can take the standard deduction on Forms 1040, 1040A or 1040EZ. 5  File Electronically. Visit IRS.gov and use the Interactive Tax Assistant tool to help determine your standard deduction. 2  File the right forms. 3  To itemize your deductions, use Form 1040 and Schedule A, Itemized Deductions. 4  You can take the standard deduction on Forms 1040, 1040A or 1040EZ. 5  File Electronically.