How to calculate organizational and start-up cost deduction for C Corp?
Once an organization has determined what types of organizational and start-up costs are allowed to be deducted, the deduction would be calculated as follows:
The visual below provides an example:
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Are organizational & start-up costs tax deductible for a C Corp?
For a C Corp, there are certain organizational & start-up costs that are considered qualified costs and certain costs that are excluded (i.e. not allowed).
Are entertainment expenses tax deductible for C Corporations?
No, entertainment expenses are no longer deductible. A company is allowed to deduct 50% of the business meals as long as they meet certain requirements. Prior to the 2017 TCJA, C Corporations were able to deduct 50% of their entertainment expenses.