Matthew, a car dealer in Atlanta, wants to open a restaurant in Miami.He spends $8,000 investigating the location and feasibility of opening the restaurant in 2019, Matthew opens the restaurant in Miami in November and spends an additional $7,000 in start-up costs.In 2019 Matthew can:

Question

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The IRS allows a deduction of up to $5,000 in start-up costs in the year the business begins operation, with the remainder to be amortized over 15 years. Since Matthew's total start-up costs are $15,000, he can deduct $5,000 in 2019 and amortize the remaining $10,000.

Matthew, a Car Dealer in Atlanta, Wants to Open a Restaurant