Tory considered opening a cupcake store in Denver.Tory is currently a full-time dentist.After spending $8,600 on a market study,he decided against opening the store on August 1.What is the maximum amount of deduction for the current year attributable to this expenditure?

Question

Quizplus · Accepted Answer

The $8,600 spent on a market study is considered a startup cost. Since Tory decided not to proceed with the business, these costs are not deductible as they are considered personal expenses.

Tory Considered Opening a Cupcake Store in Denver