All costs of organizing a partnership can be deducted in the year in which the partnership begins business.

Name: All costs of organizing a partnership can be deducted in the year in which the partnership begins business.
Brand: Quizplus
Rating: 4.9 (48 reviews)

Question

Quizplus · Accepted Answer

Costs of organizing a partnership are considered start-up costs and are subject to capitalization and amortization rules. The partnership can elect to deduct up to $5,000 of these costs in the first year of business, with the remainder being amortized over a period of 180 months.

All Costs of Organizing a Partnership Can Be Deducted in the Year