Question

In 2018 the XYZ Partnership incurred the following expenses:

Expenses of selling partnership interests	$10,000
Attorney's fees for drafting partnership agreement	30,000
Exoenses of transferring title of property to partnersip	8,000
Accounting fees to organize partnership	22,000

If XYZ began business on August 1, 2018, how much in total of these expenses could XYZ deduct (including amortization)?

Answer 1

If all the expenses incurred before the incorporation 1 august 2018 in thee given it seems a partnership firm acquire business of other firm . and expenses related to acquisition given under which will treated as preliminary expenses for XYZ ltd.

Expenses of selling partnership interest	10000
Attorney’s fees	30000
Expenses of transferring	8000
Accounting fees to organise	22000
Total	70000
Amount Transferred to Profit and loss (1/5 of 70000)	14000