Furthermore, if your start-up expenses exceed $55,000 or more, you won't be able to claim the $5,000 deduction for the first year. For example, if start-up costs are $51,000, the deduction is reduced to $4,000. If start-up costs are $55,000 or more, the $5,000 deduction is completely phased out. Read more at IRS.gov.read more >>