What are start-up expenditures? How are they treated for tax purposes? A. Start-up expenditures are ordinary and necessary business expenses paid or incurred to investigate the creation or acquisition of an active trade or business, to create an active trade or business, or to conduct an activity engaged in for profit or the production of income before the time the activity becomes an active trade or business. A corporation can elect to deduct the first $500 of the expenditures and amortize the remainder over a period of 72 months starting with the month in which an active trade or business begins. OB. Start-up expenditures are ordinary and necessary business expenses paid or incurred to investigate the creation or acquisition of an active trade or business, to create an active trade or business, or to conduct an activity engaged in for profit or the production of income before the time the activity becomes an active trade or business. A corporation can elect to deduct the first $5,000 of the expenditures and