On May 1, Rick formed a new corporation, Red, Inc. He spent $3,000 in legal fees and paid the state...

Question

On May 1, Rick formed a new corporation, Red, Inc. He spent $3,000 in legal fees and paid the state $600 in incorporation fees to set up Red Corporation.Red Corporation started operating its business on May 10. Can Rick or Red Corporation deduct either of these organizational fees? In answering this case, use a computer tax service with only the Internal Revenue Code database selected. State your keywords and which computer tax service you used to arrive at your answer.

Robert · Accepted Answer

Case: 
Rick formed a new corporation as on May 1, named Red Inc. An amount of $ 3,000 and $ 600 
was spent as legal fees and paid to state respectively as incorporation fees for set up. The 
operations started as on May 10.  
Issue: 
Can Rick or Red Corporation deduct either of these organizational fees? 
Discussion:

On May 1, Rick formed a new corporation, Red, Inc. He spent $3,000 in legal fees and paid the state $600 in incorporation fees to set up Red Corporation.Red Corporation started operating its business...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment