Ficus,Inc.began business on March 1,2017,and elected to file its income tax return on a calendar-year basis.The corporation incurred $800 in organizational expenditures.Assuming the corporation does not elect to expense but chooses to amortize the costs over 180 months,the maximum allowable deduction for amortization of organizational expenditures in 2017 is:

Question

Quizplus · Accepted Answer

The corporation can amortize the $800 organizational expenditures over 180 months. For 2017, the amortization period is 10 months (March to December), so the deduction is ($800/180) * 10 = $44.44.

Ficus,IncBegan Business on March 1,2017,and Elected to File Its Income