Random Facts Flashcards
1
Q
How long does a TP have to file an amended return?
A
-3 years after filing date of original return
-2 years after the payment of tax related to the return
WHICHEVER IS LATER!
2
Q
Organizational Costs
A
- can be amortized over 15 years
- SPECIAL RULE: can expense up to $5,000, unless the total is more than $55,000.
- can be taken in the first year’s tax return or if not taken, must wait until company is liquidated to to receive a deduction
3
Q
Start-up costs
A
- can elect to deduct 5k of business start up expense
- this is reduced dollar for dollar until zero if expenses are over 50k, at which point costs will be amortized over 180 months as section 197 intangible
4
Q
Partnership
When can they amortized Organizational Costs?
A
Must satisfy ALL 5 tests:
- For Partnership creation, specifically
- Chargeable to capital account
- Amortized over life of Partnership, if it has a fixed life
- Incurred by due date of first return (excluding extensions
- Item expected to benefit Partnership for entire life
5
Q
Partnership
Costs that can’t be amortized, regardless of characterization?
A
- Acquiring or transferring assets
- Admitting/removing partners after inception of Partnership
- Contacts relating to business ops
- Syndicating Partnership
