Question

In June of the current year, Racheal began investigating the possibility of opening a tax firm....

In June of the current year, Racheal began investigating the possibility of opening a tax firm. From June through August she spent $1,000 on a market survey, $2,600 in consulting fees to find the best location and $3,200 in professional fees setting up an accounting and inventory system. Although she had never run her own business before, on September 1 she opened her doors for business. What is the maximum amount of deduction for the current year attributable to these expenditures?

A) $5,000  

B) $0   

C) $6,800

D) $5,040  

Homework Answers

Answer #1

Answer : D)$5040

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