Puloso Company, a calendar year taxpayer, incurred the following start-up expenditures before the opening of its new health and fitness center.
Rent on commercial space $\quad$$\quad$ $\quad$ $6,000
Utilities $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$1,490
Staff hiring and training $\quad$$\quad$$\quad$$\quad$$\quad$5,270
Television advertising $\quad$$\quad$$\quad$$\quad$$\quad$ 1,600
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$ 14,360
The Puloso Center opened its doors for business on March 21 of the current year. How much of the start-up expenditures can Puloso deduct this year?

Question

Puloso Company, a calendar year taxpayer, incurred the following start-up expenditures before the opening of its new health and fitness center.
Rent on commercial space $\quad$$\quad$    $\quad$ $6,000
Utilities $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$1,490
Staff hiring and training $\quad$$\quad$$\quad$$\quad$$\quad$5,270
Television advertising $\quad$$\quad$$\quad$$\quad$$\quad$ 1,600
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$ 14,360
The Puloso Center opened its doors for business on March 21 of the current year. How much of the start-up expenditures can Puloso deduct this year?

Quizplus · Accepted Answer

Puloso can deduct $5,000 of the start-up expenditures and is allowed a $520 amortization deduction ([$9,360 capitalized cost/180 months] × 10 months beginning in March).

Puloso Company, a Calendar Year Taxpayer, Incurred the Following Start-Up \quad

Puloso Company, a Calendar Year Taxpayer, Incurred the Following Start-Up $\quad$