[n.ACMA]

can anybody explain how org. expenses between 50-55k will be amortized over 180 months?

[Gatorbates]

Total org expenses: 55,000.

Expense 5,000 in current year. 50,000 remaining. 50,000/180 = 278 per month for the next 15 years.

Licensed Florida CPA:
B: 71, 73, 79
A: 83
R: 78 (expired), 77
F: 74, 74, 80

It's finally freaking over.

[Gatorbates]

Total org expenses: 55,000.

Expense 5,000 in current year. 50,000 remaining. 50,000/180 = 278 per month for the next 15 years.

Licensed Florida CPA:
B: 71, 73, 79
A: 83
R: 78 (expired), 77
F: 74, 74, 80

It's finally freaking over.

[Lindrobe]

A corporation may elect to deduct up to $5,000 of organization expenditures for the tax year in which the corporation begins business. The $5,000 amount must be reduced – not below zero – by the amount by which organizational expenditures exceed $50,000. Remaining expenditures must be deducted ratably over the 180-month period beginning with the month in which the corporation begins business.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Lindrobe]

A corporation may elect to deduct up to $5,000 of organization expenditures for the tax year in which the corporation begins business. The $5,000 amount must be reduced – not below zero – by the amount by which organizational expenditures exceed $50,000. Remaining expenditures must be deducted ratably over the 180-month period beginning with the month in which the corporation begins business.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Anonymous]

There is also a phase-out. I believe the 55,000 is phased-out by 15% of the amount over 180,000, but I could be wrong.

[Anonymous]

There is also a phase-out. I believe the 55,000 is phased-out by 15% of the amount over 180,000, but I could be wrong.

[n.ACMA]

@ Gatorbates: if the expenses for example are 53k, so it would be 3k + (50/180)?

[n.ACMA]

@ Gatorbates: if the expenses for example are 53k, so it would be 3k + (50/180)?

[Juliemiddle]

You can immediately deduct $5k of org. and start-up expenses (but not syndication expenses), and amortize the rest. However, there is a phase-out after $50k of organizational expenses. For your example of a company with $53k of expenses…

-The $5k is reduced by $3k (amount over $50k) = $2k expensed in the first year

…AND…

-The remaining $51k ($53k – $2k) is amortized over 180 months…starting in the month the company started business.

AUD: 84 - Oct. 2013
BEC: 83 - Feb. 2014
REG: 91 - May, 2014
FAR: 68, 96 - Oct. 2014...DONE

CPAExcel, Ninja Audio (all sections)

[Juliemiddle]

You can immediately deduct $5k of org. and start-up expenses (but not syndication expenses), and amortize the rest. However, there is a phase-out after $50k of organizational expenses. For your example of a company with $53k of expenses…

-The $5k is reduced by $3k (amount over $50k) = $2k expensed in the first year

…AND…

-The remaining $51k ($53k – $2k) is amortized over 180 months…starting in the month the company started business.

AUD: 84 - Oct. 2013
BEC: 83 - Feb. 2014
REG: 91 - May, 2014
FAR: 68, 96 - Oct. 2014...DONE

CPAExcel, Ninja Audio (all sections)

[Gatorbates]

^^ What Julie said 🙂

Licensed Florida CPA:
B: 71, 73, 79
A: 83
R: 78 (expired), 77
F: 74, 74, 80

It's finally freaking over.

[Gatorbates]

^^ What Julie said 🙂

Licensed Florida CPA:
B: 71, 73, 79
A: 83
R: 78 (expired), 77
F: 74, 74, 80

It's finally freaking over.

[Author]

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