Question
Paul operates a restaurant in Cleveland. He travels to Columbus to investigate acquiring a business. He incurs expenses as follows: $1,500 for travel, $2,000 for
Paul operates a restaurant in Cleveland. He travels to Columbus to investigate acquiring a business. He incurs expenses as follows: $1,500 for travel, $2,000 for legal advice, and $3,500 for a market analysis. Assuming all the events occurred in 2016 and Paul chooses to claim deduction/amortization, How much can Paul deduct in 2016, if 1. The new business is a restaurant and Paul did not acquire or start the restaurant. 2. The new business is a restaurant and Paul acquired or started the restaurant on Apr. 1st, 2016. 3. The new business is in manufacturing industries and Paul did not acquire or start it. 4. The new business is in manufacturing industries and Paul acquired or started in on Apr. 1st, 2016.
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