Puloso Company,a calendar year taxpayer,incurred the following start-up expenditures before the opening of its new health and fitness center. The Puloso Center opened its doors for business on March 21,2017.How much of the start-up expenditures can Puloso deduct in 2017?

Question

Puloso Company,a calendar year taxpayer,incurred the following start-up expenditures before the opening of its new health and fitness center.   The Puloso Center opened its doors for business on March 21,2017.How much of the start-up expenditures can Puloso deduct in 2017?

Quizplus · Accepted Answer

Puloso Company can deduct up to $5,000 of its start-up expenditures in the year it begins business. The remaining expenses must be amortized over a period of 180 months beginning in the month the business starts. Therefore, the deduction for 2017 would be $5,000 + ($38,400/$180 months x 10 months) = $5,000 + $520 = $5,520.

Puloso Company,a Calendar Year Taxpayer,incurred the Following Start-Up Expenditures Before