At the election of the taxpayer,a current deduction is allowed for the lesser of actual business start-up expenditures incurred or $5,000 with the remainder capitalized and amortized over 180 months.

Question

Quizplus · Accepted Answer

This statement is true. Under Section 195 of the Internal Revenue Code, taxpayers can elect to deduct up to $5,000 of start-up expenses in the year they begin a new business. Any remaining expenses must be capitalized and amortized over a 180-month period.

At the Election of the Taxpayer,a Current Deduction Is Allowed