In the current year the GHI partnership incurs 60000 of expe

In the current year the GHI partnership incurs $60,000 of expenses that qualified as organizational expenses. GHI is a calendar year partnership and begins business in November of the current year. How much is GHI’s deduction of the organizational expenses in the current year, assuming it elects the maximum of each?

a. $0

b. $5,000

c. $10,000

d. None of the above

Solution

Answer : GHI\'s deduction of the organizational expenses in the current year would be $5000.