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 (excluding amounts amortized over 180 months) 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, a taxpayer can deduct up to $5,000 of start-up costs in the year the business begins. Since Jasmine incurred $10,000 in start-up costs, she can deduct $5,000 immediately and the remaining $5,000 must be amortized over the next 180 months (15 years). Therefore, the correct choice is C.

Jasmine Started a New Business in the Current Year