Assume the same facts as in Problem 1:6-40, except that Big Bang LLC incurs $51,000 in expenses,
Question:
Assume the same facts as in Problem 1:6-40, except that Big Bang LLC incurs $51,000 in expenses, and it does not already own the other entertainment galleries and it does not own anything similar.
a. What is the proper tax treatment of these expenses if Big Bang does not open the new gallery?
b. What is the proper tax treatment of these expenses if Big Bang decides co open the new gallery on May 1 of the current year and makes the appropriate election under Sec. 195?
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a The expenses are not deductible because Big Bang LLP is not ...View the full answer
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Related Book For 
Federal Taxation 2019 Individuals
ISBN: 9780134739670
32nd Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson
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