ETAX Corporation Income and Deductions R17-180X

Provide the tax treatment for organizational expenditures.

• The expense must be incurred before the end of the first tax year.
• One-time deduction of up to $5,000 allowed in the first year.
• If total organizational expenses exceeds $50,000, the $5,000 is phased-out $1 for $1.
• Amount not deducted in year 1, is amortized over 180 months.
• Syndication expenses (stock issuance fees) are not included.