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 expensed (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

$5,000 of start-up expenses can be immediately expensed. The $5,000 maximum phases out dollar for dollar if more than $50,000 of start-up costs are incurred.

Jasmine Started a New Business in the Current Year