[jeff]

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Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Skrier]

@Qlad….the $5,000 deduction is available up to $50,000 in startup cost and is reduced for organizational expense exceeding $50,000. So in this case the org. expense is 130,000 which exceeds $50,000 by $80,000….what is not clear is the dollar rate…(dollar for dollar reduction exceeding $50,000. Perhaps someone else may be able to clarify the reduction amount.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[terranz]

hi guys

Any thoughts on my q's a couple posts above?

questions posted by cupcake and insiyah previously, and one about individual tax.

thanks.

[terranz]

hi guys

Any thoughts on my q's a couple posts above?

questions posted by cupcake and insiyah previously, and one about individual tax.

thanks.

[Skrier]

@terranz….which ones do you have a question about?? I will try to help.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

@terranz….which ones do you have a question about?? I will try to help.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[terranz]

@skrier – for start up costs, the 5000 is reduced dollar for dollar above 50000

so by 50000, you can't subtract the 5000 ‘freebie' from start up costs. you can only amortize over 180.

@insiyah – i haven't found/heard anything about the 250/500 reduction for sale of principle residence.

[terranz]

@skrier – for start up costs, the 5000 is reduced dollar for dollar above 50000

so by 50000, you can't subtract the 5000 ‘freebie' from start up costs. you can only amortize over 180.

@insiyah – i haven't found/heard anything about the 250/500 reduction for sale of principle residence.

[terranz]

sorry double post

[terranz]

sorry double post

[Anonymous]

260,000 book

+130,500 Add back org expenditures

=390,500

(7,250) org. expenditures amort. over 180 mos. * 10 mos in current year

=383,250

No $5,000 immediate deduction available. That is limited to $50,000 of org. expenditures and reduced $ for $ over that amt. The rest is allocated over 180 mos starting at the in service date. ($130,500/180 mos)=725 * 10 mos. in current year (March through December)= $7,250 in current yr.

[Anonymous]

260,000 book

+130,500 Add back org expenditures

=390,500

(7,250) org. expenditures amort. over 180 mos. * 10 mos in current year

=383,250

No $5,000 immediate deduction available. That is limited to $50,000 of org. expenditures and reduced $ for $ over that amt. The rest is allocated over 180 mos starting at the in service date. ($130,500/180 mos)=725 * 10 mos. in current year (March through December)= $7,250 in current yr.

[Skrier]

@terranz and Cupcake, thank you for clarifying, I wasn't sure if it was a dollar for dollar reduction, but I knew a reduction applied to org costs over $50,000.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

@terranz and Cupcake, thank you for clarifying, I wasn't sure if it was a dollar for dollar reduction, but I knew a reduction applied to org costs over $50,000.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[OCDisME]

About the organizational costs…does anyone have any examples of where the organizational costs exceeded the 50K limit, but not completely in excess to the point that all costs are amortized? I don't understand the dollar for dollar reduction when the org costs exceed 50K. Does this make sense?

Becker Online - IL Candidate

FAR: 85
AUD: 85
BEC: 78
REG: 90

[OCDisME]

About the organizational costs…does anyone have any examples of where the organizational costs exceeded the 50K limit, but not completely in excess to the point that all costs are amortized? I don't understand the dollar for dollar reduction when the org costs exceed 50K. Does this make sense?

Becker Online - IL Candidate

FAR: 85
AUD: 85
BEC: 78
REG: 90

[Author]

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