[Anonymous]

So I am now using both Becker and CPA Excel and have come across an interesting issue. Per Becker, the organizational expense limit is $5,000 with any qualifying expense excess amortized over 18 months, up to 50,000, with a reduction dollar for dollar on the 5,000 of any excess over the 50k limit. CPA Excel says it’s $10,000 and 60k limit, effective 2010. ANyone else noticed this? I have the 2011 Becker books and didn’t see any mention in there.

[WhyMe23]

No problem, I think we are all trying to keep up with the changes. I could definitely see both of these showing up on the exam and I will be ready for it. I think I need to practice calculations on the topics that Becker only talks about but doesn't give good examples for such as 179, MACRS, etc. Those REG SIMs aren't going to scare me! I can't wait to attack them.

B - 85 (5/31/11)
A - 93 (7/1/11)
R - 87 (7/29/11)
F - 77 (8/31/11)

[Anonymous]

Allyson, whenindoubt,

On page R4-14 Becker book, org and start up costs are 5000/50000 for partnership. I don't see the change for partnership on Becker Update website.

Is partnership still 5k/50k for both org and start up? Please clarify.

[Anonymous]

organizational costs are still 5000 50,000, start up costs are now 10,000/60,000. per becker updates

[Anonymous]

Great question but it's an apple and oranges question. In CPAexcel, the professor wrote that $10K in START-UP expenses (the proverbial apple). As to your orange in organizational expenses, this is from the CPAexcel lesson and it shows both courses are in agreement:

Special Corporate Deductions

I.

Organizational, Start-Up, and Syndication Expenditures

A. Expenses incurred in connection with the organization of a corporation are organizational expenses. $5,000 of these expenses may be deducted, but the $5,000 is reduced by the amount of expenditures incurred that exceed $50,000. Expenses not deducted must be capitalized, and amortized over 180 months, beginning with the month that the corporation begins its business operations, unless an election is filed not to do so.

–Hope that helps to clarify!

[Anonymous]

For Individuals, Yaeger used the $5k/$50k rule, but Phil did an update and it's now $10/$60. But I believe for Corporations, it remains at $5k/$50k, but I could be wrong. If I am, please correct me.

All these changes are ridiculous!!

[jeff]

The REG NINJA reflects the change.

[kandisjoy]

Nevermind!

FAR: 71, 77
BEC: 70, 82
AUD: 62, 78
REG: 71, 68, 85

CA Licensed 11/2011

[Whenindoubt]

The Becker update on this only addresses Chapter 3, which is for Corporations. How does this change affect Pships? Is it the $5K, $50K for organization costs and $10K, $60K for start-up costs? Becker did not update the language for partnerships on this subject.

Any help is greatly appreciated!!

BEC: 75 11/8/10
AUD: 89 2/22/11
FAR: 78 5/17/11
REG: 72, 83 10/17/11
DONE!!!!

[jeff]

“$50K for organization costs and $10K, $60K for start-up costs?”

Exactly.

[nolacpa]

Thanks for bringing this up! I studied the updates from Becker, but somehow missed this.

What is the difference between “organizational” and “start-up” costs?

AUD 97
FAR 82
REG Oct 1
BEC

[Whenindoubt]

The IRS lists examples of both here: https://www.irs.gov/publications/p535/ch08.html#en_US_2010_publink1000208939

BEC: 75 11/8/10
AUD: 89 2/22/11
FAR: 78 5/17/11
REG: 72, 83 10/17/11
DONE!!!!

[nolacpa]

Thanks

This is from a powerpoint slide released by the AICPA, titled “Small Business Tax Saving Strategies for 2011”

Start-up Costs

-Deduction in year business starts/succeeding years

-Full range of investigatory costs

-First $10,000 in expenses and 180-month amortization period

-$60,000+ dollar-for-dollar phaseout

Organizational Costs 

-Deduction for certain costs in creating C or S corporation or partnership

-$5,000 maximum

-$50,000+ dollar-for-dollar phaseout

-Same rules as business start-up costs

-Certain legal and accounting fees

AUD 97
FAR 82
REG Oct 1
BEC

[lovexly]

@CPAMAN, how can I get the REG update for Yaeger? I seem to be missing my sheet for his contact info. TIA!

FAR - 83 - 05/23/2011
BEC - 85 - 07/02/2011
AUD - 79 - 08/13/2011
REG - scheduled Oct 10

[Magayon]

@ Lovexly, I think you have to request for it. Go to their website and check out REG updates. It'll say a higher amount during the check out but if you're a student, they'll only charge you $10.00, i guess. I purchased mine after they taped the update so i thought the update should be part of the DVD's I bought. Unfortunately, it wans't the case.

FAR: 7/3(87)
BEC: 8/31(75)
AUD: 11/15(81)
REG: 8/31(83)
I'M DONE!!!!!

[lovexly]

@Magayon

Thanks so much! I purchased mine after the update too and thought the same as you. Wow.. I guess I'm even more behind than I thought I was.

FAR - 83 - 05/23/2011
BEC - 85 - 07/02/2011
AUD - 79 - 08/13/2011
REG - scheduled Oct 10

[Author]

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