[SkiBum1990]

-both get $5,000 of separate IMMEDIATE DEDUCTIONS if each are under $50,000 and the rest is amortized over 180 months

-if either costs exceed $50,000, the costs are amortized and over 180 months and no deduction is available

Becker doesn’t explain it to well…

B - 79
A - 68, 70 (UGH)
R - Oct
F - Nov

"The mind can only absorb as much as the seat can take"

"The mind can only absorb as much as the seat can take"

B - 79
A - 68, __ (got bumped from Aug 4 release to Aug 23-THANKS AICPA)
R - Oct
F - Nov (HA! 1 month to study working full-time; love NTS rules)

[SkiBum1990]

ahhhh, it seems that the deduction is reduced by the excess over $50,000 and is completely eliminated @ $55,000 …

B - 79
A - 68, 70 (UGH)
R - Oct
F - Nov

"The mind can only absorb as much as the seat can take"

"The mind can only absorb as much as the seat can take"

B - 79
A - 68, __ (got bumped from Aug 4 release to Aug 23-THANKS AICPA)
R - Oct
F - Nov (HA! 1 month to study working full-time; love NTS rules)

[Reg_Slayer]

i get tied up because sometimes when you amortize over 180 months you do (x-150-5) * (#months/180).
and in other questions you just do (x-150) * (#months/180)

I guess this has to do with the 5 deduction being phased out?

This is from Ninja MCC #787

Taxpayers may deduct up to $5,000 in the taxable year in which the business begins; however, the $5,000 amount is reduced by the amount by which the cumulative cost of organizational expenditures exceeds $50,000. Since the amount over $50,000 is $10,000, the $5,000 would be reduced to $0. The entire amount must be capitalized and amortized over 180 months ($60,000 × (12 ÷ 180) = $4,000).

 

[Author]

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