Generally when business startup costs exceed the maximum amo

Generally, when business start-up costs exceed the maximum amount allowed, the remaining costs may be amortized over_____ months. *

	240
	180
	120
	60

Solution

Answer b. 180 months Any excess amount over the first year limit of $5,000 (Start up costs) must be amortized over 15 years (180 months). An election to amortize the excess over $5,000 is made by claiming the deduction on Form 4562, Part VI.