Question

You are an accountant. You are interested in starting a baby clothing boutique. In 2018, you spend $2,800 on surveying potential locations and some initial logo designs. You decided to buy a location to open your boutique in 2019 and pay an additional $4,000 in legal fees. A month later, on September 1st, the boutique opens, What are your 2019 deductions? $4,000 $5,000 $6,800 $5,120 $5,010 $5,040

Answer 1

Ans: $ 4000 is 2019 deductions and whatever expenses incurred in 2018 has to be shown in 2018 only.