Determine the deduction for organizational costs


Response to the following problem:

June performs services to a corporation solely in exchange for stock in the corporation. June's basis in the stock is $0 since she did not pay anything for the stock ? The $5,000 immediate deduction for organizational costs is not allowed when the corporation's organizational costs exceed $55,000.

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Taxation: Determine the deduction for organizational costs
Reference No:- TGS02109819

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