The MNO Partnership, a Calendar Year Taxpayer, Was Formed on July

question 59

True/False

The MNO Partnership, a calendar year taxpayer, was formed on July 1 of the current year and started business on October 1. MNO incurred $30,000 in startup costs. MNO may deduct $5,000 and amortize the remaining $25,000 over 120 months starting in July.

---

Definitions:

Tax Cuts

Reductions in the amount of tax that individuals or corporations are required to pay to the government.

Corporate Profits

The earnings of companies after all expenses and taxes have been paid.

Tax Revenues

The income that is gained by governments through taxation—funding various public expenses.

Transfer Payments

Monetary payments made by governments that do not correspond to the provision of a good or service, such as social security payments or welfare benefits.