asked

Is the $10,000 start-up deduction allowed under IRC Section 195(b)(1) subject to disallowance in the future if the IRS determines that the activity was 'not for profit'? Or, is this deduction, in effect, a 'freebee' for the first year of an activity and not subject to disallowance with all of the negative ramifications such as additional tax, interest, and penalty related to an adjusted return for the year the deduction was claimed?

January 30th, 2023

Sign Up to View Answers

Create an account to view answers and interact with the community!