Jasmine started a new business in the current year. She incurred $18,000 of start-up costs. How much of the start-up costs can b

Question

SCORPION-xisa [38]

3 years ago

13

Jasmine started a new business in the current year. She incurred $18,000 of start-up costs. How much of the start-up costs can b

e immediately deducted (excluding amounts amortized over 180 months) for the year?

Business

1 answer:

liq [111] · Answer 1 · 2022-01-08T19:28:16+03:00

Answer:

$5,000

Explanation:

According to the Internal Revenue Service, the amount of deduction for startup costs would be limited to $5,000 if the startup costs are $50,000 or less

However, if the start-up costs were more than $50,000, the deduction would be decreased by the dollar amount.

Since in the given scenario, the $18,000 is the startup cost so she is eligible for the deduction of $5,000