Question

36. 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

Expenses of transferring title pf property to partnership 80,000

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 givenn it seems a partnership firm acquire business of other firm . and expenses related to acquisition given nder which will treated as preliminar expenses for XYZ ltd

Expenses of selling partnership interest	10000
Attorny's fees	30000
Expenses of transferring	80000
Accounting fees to organise	22000
Total	142000
Amount Transferred to Profit and loss ( 1/5 of 142000)	28400