Tax Consequences

Sigchi4life
Category:
Business & Finance
Price: $5 USD

Question description

Justin and Rachel want to open a restaurant.  They contribute $3,000 each for a survey to locate an appropriate area for their restaurant and $2,000 each for a real estate agent to locate a suitable building for them to buy.  Shortly after this, Rachel and Justin have a disagreement and Rachel walks away from the plan.  Although she asks Justin to reimburse her, he refuses.  Justin then continues the project on his own.  He spends $6,000 for legal and accounting fees to set the business up and $9,000 for staff training.  What are the tax consequences to Justin for these expenditures when the restaurant opens in July?  For Rachel?


Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1827 tutors are online

Related Business & Finance questions

05/05/2013
05/05/2013
05/05/2013
05/05/2013
05/05/2013
05/05/2013
05/05/2013
05/05/2013

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors