Detailed Answer
(b) The requirement is to determine the maximum
amount of filing fees and accounting fees that Basic could deduct
on the 2013 partnership return. The filing fees incident to the
creation of the partnership are organizational expenditures. A
partnership may deduct up to $5,000 of organizational expenditures
for the tax year in which the partnership begins business,
with any remaining expenditures deducted ratably over the 180-
month period beginning with the month in which the partnership
begins business. Here, since the organizational expenditures
total only $3,600, they can be fully deducted for 2013.
The accounting fees to prepare the representations in offering
materials are considered syndication fees. Syndication fees
include the costs connected with the issuing and marketing of
partnership interests such as commissions, professional fees, and
printing costs. These costs must be capitalized and can neither
be amortized nor depreciated.