MEM Partners was formed during the current tax year.It incurred $20,000 of organizational expenses,$100,000 of startup expenses,and $200,000 of syndication costs.Which of the following statements is correct regarding these payments?
A)MEM may deduct $5,000 of the syndication costs;the remaining amount must be amortized.
B)MEM must amortize the $20,000 of organizational expenses over 180 months.
C)MEM's startup expenses are amortized over 60 months.
D)MEM must file an election to deduct and/or amortize its organizational expenses,startup costs,and syndication costs.
E)None of the above statements are true.

Question

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The Answer of MEM Partners was formed during the current tax year.It incurred $20,000 of organizational expenses,$100,000 of startup expenses,and $200,000 of syndication costs.Which of the following statements is correct regarding these payments?
A)MEM may deduct $5,000 of the syndication costs;the remaining amount must be amortized.
B)MEM must amortize the $20,000 of organizational expenses over 180 months.
C)MEM's startup expenses are amortized over 60 months.
D)MEM must file an election to deduct and/or amortize its organizational expenses,startup costs,and syndication costs.
E)None of the above statements are true.

MEM Partners Was Formed During the Current Tax Year