Please help me solve! During January and February of the current year, Big...
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During January and February of the current year, Big Wow LLC incurs $53,000 in travel, feasibility studies, and legal expenses to investigate the feasibility of opening a new entertainment gallery in one of the new suburban malls in town. Big Wow LLC does not own any other entertainment galleries and it does not own anything similar at the current time. Assume that the year is 2020. Read the requirements. a. b. What is the proper tax treatment of these expenses if Big Wow does not open the new gallery? What is the proper tax treatment of these expenses if Big Wow decides to open the new gallery on July 1 of the current year and makes the appropriate election under Sec. 195
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