Tommy, an automobile mechanic employed by an auto dealership, is considering opening a fast-food franchise.If Tommy decides not to acquire the fast-food franchise, any investigation expenses are:
A)A deduction for AGI.
B)A deduction from AGI, subject to the 2% floor.
C)A deduction from AGI, not subject to the 2% floor.
D)Deductible up to $5,000 in the current year with the balance being amortized over a 180-month period.
E)Not deductible.

Question

Quizplus · Accepted Answer

Investigation expenses associated with a potential business venture are not deductible. Therefore, if Tommy decides not to acquire the fast-food franchise, he cannot deduct any investigation expenses.

Tommy, an Automobile Mechanic Employed by an Auto Dealership, Is