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newbee2
Level 2

tax-line mapping for startup cost

We have about $3K in startup cost / organization cost which we have recorded as an expense under a new COA we created - startup cost.  We plan to pay our self back as an expense this amount.  What should this expense be mapped to tax-line in COA for this?

 

Also, do we need to separate organization cost vs startup cost - if yes, what should both of these be mapped as tax-line in COA?

 

Thanks in advance for your help.

3 Comments 3
Rustler
Level 15

tax-line mapping for startup cost

You can not claim an expense now and claim that same expense later when you "pay yourself back"

 

You can loan the money to the company, pay the expenses, and later pay yourself back.

newbee2
Level 2

tax-line mapping for startup cost

Sorry if my question was not clear - I have already spent this money before starting the company - I plan to pay myelf back for this amount once I get paid from clients.  Question is how do i show this in Chart of Accounts - what tax-line do I map this Start-up Chart of Account.

MaryLurleenM
Moderator

tax-line mapping for startup cost

Hello there, newbee2,

 

We can only walk you through the process of setting up the account. However, when it comes to selecting the tax-line mapping, it's best to reach out to your accountant or a tax professional.

 

When you create a new account in Chart of Accounts, you'll see a link How do I choose the right tax line?. If you click that one, it'll give you a detailed information why it's necessary to consult a tax professional on how to use tax line mapping.

 

Here's how:

  1. Click Accountant on the menu.
  2. Select Chart of Accounts.
  3. Click Ctrl+N on your keyboard to create a new account.
  4. Click the How do I choose the right tax line? A Help Article window will pop-up.

 

Let me know if you have additional questions about this. I'll be happy to answer them for you.

 

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