Jasmine started a new business in the current year. She incurred $16,000 of start-up costs. How much of the start-up costs can be immediately deducted (excluding amounts amortized over 180 months)for the year?
A)$0
B)$2,500
C)$5,000
D)$16,000
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

Start-up costs up to $5,000 can be immediately deducted in the current year, with any excess amount being amortized over 180 months. Therefore, Jasmine can immediately deduct $5,000 of the $16,000 in start-up costs, and the remaining $11,000 will be amortized over the next 15 years.

Jasmine Started a New Business in the Current Year