2. Warren owns a marketing business. He travels to Maryland in May 2020 to discuss acquiring an accounting business. In June Warren travels to Georgia to discuss acquiring a pizza shop. Warren does not acquire the accounting business but does purchase the pizza shop on December 2, 2020. Total costs to investigate acquiring the accounting business $25,000. Total costs to investigate acquiring the pizza shop $52,000. What is the maximum amount Warren can deduct in 2020 for investigating these businesses? How will he show this on his tax return? Calculate the deduction that Warren can take on his tax return for 2020.
2. Warren owns a marketing business. He travels to Maryland in May 2020 to discuss acquiring an accounting business. In June Warren travels to Georgia to discuss acquiring a pizza shop. Warren does not acquire the accounting business but does purchase the pizza shop on December 2, 2020. Total costs to investigate acquiring the accounting business $25,000. Total costs to investigate acquiring the pizza shop $52,000. What is the maximum amount Warren can deduct in 2020 for investigating these businesses? How will he show this on his tax return? Calculate the deduction that Warren can take on his tax return for 2020.
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 31CE
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Transcribed Image Text:2. Warren owns a marketing business. He travels to Maryland in May 2020 to discuss acquiring an
accounting business. In June Warren travels to Georgia to discuss acquiring a pizza shop. Warren
does not acquire the accounting business but does purchase the pizza shop on December 2,
2020.
Total costs to investigate acquiring the accounting business $25,000.
Total costs to investigate acquiring the pizza shop $52,000.
What is the maximum amount Warren can deduct in 2020 for investigating these businesses?
How will he show this on his tax return? Calculate the deduction that Warren can take on his tax
return for 202o.
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ISBN:
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Author:
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Publisher:
CENGAGE LEARNING - CONSIGNMENT