What is the correct tax treatment of startup expenditures

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Reference no: EM131156827

I talked with John Dobson regarding the tax treatment of startup expenditures related to the opening of a new restaurant.

Mr. Dobson recently formed John's Premium Steakhouse, Inc., with a contribution of cash in exchange for 100% of the corporation's stock.

The corporation has since entered in leases for a building and restaurant equipment. Mr. Dobson requested guidance on the tax treatment of the various operating expenses the corporation expects to incur prior to the opening of the restaurant.

At issue: What is the correct tax treatment of startup expenditures?
Conclusion:

Reference no: EM131156827

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