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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?

 

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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... blur-text-image

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