topic Can my daughter deduct the total amount she paid for a business license as a single business deduction this year, or does this require amortization over 15 years? in Business & farm

Can my daughter deduct the total amount she paid for a business license as a single business deduction this year, or does this require amortization over 15 years?

Bholy — Sat, 01 Jun 2019 20:35:01 GMT

My daughter has a very small franchised licensed music business. A town 50 miles away has an identical business. She bought this business out as an expansion of her current business. Assests were minimal at under $500. Basically what she bought was the other indivduals license. Total purchase was under $5000.00. Can she deduct the total amount she paid for the business as a single business deduction this year, or does this require amortization over 15 years?

How long is the license for?

LudwigVan_fan — Sat, 01 Jun 2019 20:35:02 GMT

How long is the license for?

Non expiring unless she would sell her business

Bholy — Sat, 01 Jun 2019 20:35:04 GMT

Non expiring unless she would sell her business

I see in last years TurboTax Program, there is a specific...

Bholy — Sat, 01 Jun 2019 20:35:05 GMT

I see in last years TurboTax Program, there is a specific section to enter "Startup Costs" within the (Business) (Business Expenses) section. Also inthis section are "Business Vehicle Expense", "Other Common Business Expenses", and "Home Office Expense". THis years program has deleted the "Startup Costs" section.

Then I think it has to be amortized under Section 197 for...

LudwigVan_fan — Sat, 01 Jun 2019 20:35:07 GMT

Then I think it has to be amortized under Section 197 for 15 years. See the link below

https://taxmap.irs.gov/taxmap/pubs/p535-043.htm#en_us_publink1000208966