Oksana started an LLC on November 2 of the current year. She incurred $48,000 of start-up...
Oksana started an LLC on November 2 of the current year. She incurred $48,000 of start-up costs. How much of the start-up costs can be immediately expensed for the year? How much amortization may Oksana deduct in the first year?
Homework Answers
LLC members can deduct startup expenses incurred during a company’s first year of operation. However, there is a limit—no more than $5,000 of these LLC expenses expenses expenses can be deducted.
LLC members must reduce this deduction by an amount of total costs that are in excess of $50,000. The amount that exceeds this $50,000 cap is considered amortizable.
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Oksana started an LLC on November 2 of the current year. She
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