Designate whether the following expenses are fully deductible (F), partially deductible (P), or nondeductible (N) in the year paid.
-Business investigation expenses incurred by a restaurant owner who investigates but abandons plans to open a hobby mart.

Question

Quizplus · Accepted Answer

Business investigation expenses incurred by a taxpayer in connection with entering a new trade or business are generally considered capital expenses. If the business is not acquired or started, these expenses are nondeductible personal expenses.

Designate Whether the Following Expenses Are Fully Deductible (F), Partially