Jasmine started a new business in the current year. She incurred $10,000 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)$10,000
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

According to the tax law, start-up costs up to $5,000 can be immediately deducted in the current year. Since Jasmine incurred $10,000 of start-up costs, $5,000 can be immediately deducted and the remaining $5,000 must be amortized over 180 months. Therefore, the answer is choice C.

Jasmine Started a New Business in the Current Year