Election to Deduct and Amortize Start-Up Expenditures
In March, 2015, Chatham Suppliers, Inc. began the business of providing farm supplies.
Pursuant to Code Sec. 195(b) Chatham Suppliers, Inc. hereby elects to deduct/amortize start-up expenditures detailed below. The amount deducted for the tax year ending December 31, 2015 is $5,000. The remainder are to be amortized as follows:
Market research expenditures paid to Flood Consultants, LLC
$17,000
Amortization over 180 months
Preopening expenses consisting of salaries and associated employment taxes to Mike Miller and Sharon Warren
$24,000
Amortization over 180 months
Note 1-- If the expenditures had exceeded $50,000 the deductible amount would have been reduced or eliminated.
Note 2-- You should keep detailed records of the expenditures including the purpose.
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--Last update 08/24/15