Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Thomas opened a new retail shop in 2022 that sells luxury pens, ink, and other writing essentials. He organized the business as a single-member LLC.
Thomas opened a new retail shop in 2022 that sells luxury pens, ink, and other writing essentials. He organized the business as a single-member LLC. His organizational costs, which included state filing fees and legal fees for the articles of incorporation, totaled $6,500. What is the maximum amount that can be deducted as an immediate (non-amortized) expense for these organizational costs on his 2022 Schedule C?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The maximum amount of organizational costs that Thomas can deduct as an immediate expense on his 2022 Schedule C is 5000 Heres why The IRS allows businesses to deduct a limited amount of startup and o...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started