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 for the year?
A) $0
B) $2,500
C) $5,000
D) $10,000
E) None of these

Question

Quizplus · Accepted Answer

According to IRS regulations, start-up costs up to $5,000 can be immediately expensed for the year. Therefore, Jasmine can immediately expense $5,000 of the start-up costs and the remaining $5,000 must be amortized over the next 180 months.

Jasmine Started a New Business in the Current Year