What Are Start-Up Expenses for Deduction Purposes?
Updated 5 days ago (March 6, 2026)
Basically, start-up expenses refer to the money you will have to shell out in order to begin your rental activity.
These include most of the costs of getting your rental business up and running, such as:
License fees
Advertising costs
Attorney and accounting fees
Travel expenses
Market research expenses
Office supplies expenses
Tellus TIP:
Start-up expenses do not include the cost of buying your rental property.
As for the deduction amount, up to $5,000 of start-up expenses may be deducted for the year in which they are incurred. The remaining amount must be deducted in equal installments over the first 180 months in which you are in the business (commonly referred to as "amortization").
Legal Disclaimer: Tellus provides this content for informational purposes only. This is not legal advice. Laws vary by state and locality, and regulations may have changed since this article was published. Consult a qualified attorney for guidance specific to your situation.
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