Discuss the requirements in order for startup expenditures to be amortized under § 195
The expenditures must meet two requirements.
? The expenditures must be paid or incurred in connection with:
? Creating an active trade or business;
? Investigating the creation or acquisition of an active trade or business; or
?
Any activity engaged in for profit in anticipation of such activity becoming an active trade or business.
?
Such costs must be the kinds of costs that would be currently deductible if paid or incurred in connection with the operation of an existing trade or business in the same field as that entered into by the taxpayer.
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