[Anonymous]

Is there a reason or purpose behind the IRS choosing 50k for the phaseout amount for immediate expensing of start-up costs and organizational expenditures?

[monikernc]

the amount is $5000 that can be expensed immediately. the $50,000 is a cap for when amortization is required.
any amount in excess of the $50,000 reduces the maximum of $5,000 that can be expensed to no less than zero.
the remaining amount, which can exceed $50,000, must be amortized over 180 months.

as for why $50,000? who knows? maybe it is some sort of average or if in excess of that amount the business is usually in operation and beyond the start up phase in most cases.

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Ninja Book and MCQ and the forum - all the way!!!
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[Anonymous]

So nobody knows? Apparently there is a reason why $5,000 and $50,000 were chosen, specifically.

[Skynet]

The IRC is about as Convoluted as it gets. Who knows why they decided that amount. The Tax law changes every year to the point that it is very difficult to even keep up. The dysfunction of Congress also makes it worse because every decision goes down to the wire.

[Author]

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