[SkiBum1990]

-both get $5,000 of separate IMMEDIATE DEDUCTIONS if each are under $50,000 and the rest is amortized over 180 months

-if either costs exceed $50,000, the costs are amortized and over 180 months and no deduction is available

Becker doesn’t explain it to well…

"The mind can only absorb as much as the seat can take"

B - 79
A - 68, __ (got bumped from Aug 4 release to Aug 23-THANKS AICPA)
R - Oct
F - Nov (HA! 1 month to study working full-time; love NTS rules)

[SkiBum1990]

ahhhh, it seems that the deduction is reduced by the excess over $50,000 and is completely eliminated @ $55,000 …

"The mind can only absorb as much as the seat can take"

B - 79
A - 68, __ (got bumped from Aug 4 release to Aug 23-THANKS AICPA)
R - Oct
F - Nov (HA! 1 month to study working full-time; love NTS rules)

[Reg_Slayer]

i get tied up because sometimes when you amortize over 180 months you do (x-150-5) * (#months/180).
and in other questions you just do (x-150) * (#months/180)

I guess this has to do with the 5 deduction being phased out?

This is from Ninja MCC #787

Taxpayers may deduct up to $5,000 in the taxable year in which the business begins; however, the $5,000 amount is reduced by the amount by which the cumulative cost of organizational expenditures exceeds $50,000. Since the amount over $50,000 is $10,000, the $5,000 would be reduced to $0. The entire amount must be capitalized and amortized over 180 months ($60,000 × (12 ÷ 180) = $4,000).

[Author]

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