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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.
What is Schedule A? The IRS lets you take either the standard deduction or the itemized deduction. If you itemize (about 1/3 of all taxpayers do), we'll automatically fill out Schedule A, Itemized Deductions and switch you over to the 1040 long form. Schedule A lets you report certain deductible expenses like: Medical and dental costs above and beyond 10% of your AGI