Transfer taxes to change the title

Reference no: EM13133552

Cardinal, LLC incurred $20,000 of startup expenses, $3,000 of organizational costs, and paid $10,000 in transfer taxes to change the title (ownership) of a building contributed by one of the LLC's members. Which of the following statements is correct regarding these three amounts?

a. Cardinal can deduct $5,000 of the startup expenses.

b. Cardinal can amortize $15,000 of the startup expenses over 180 months.

c. Cardinal may deduct the full amount of the organizational costs.

d. Cardinal can capitalize the $10,000 tax paid as a part of the depreciable basis of the building.

e. All of the above statements are true.

Reference no: EM13133552

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