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.A phaseout of the current deduction applies in the case of start-up expenditures exceeding $50,000.

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This statement is true. The current deduction for start-up expenditures is limited to the lesser of actual expenses or $5,000, and any excess must be capitalized and amortized over 180 months. The deduction is also subject to a phaseout for start-up expenditures exceeding $50,000.

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