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What Costs Constitute Organizational Expenses For Tax Deduction?

What costs constitute start-up or organizational expenses for tax deduction?

Active Member Asked on August 8, 2016 in Finance.
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    Have you just started a new business? Did you know expenses incurred before a business begins operations are not allowed as current deductions? If you want to deduct a larger portion of your start up cost in the first year, a new business will want to begin operations as early as possible and hold off incurring some of those expenses until after business begins.

    The following are however exempted from tax: –

    • Medical or Dental expenses incurred by the employee;
    • Retirement gratuities and compensation loss of office;
    • The cost of passage to or from Nigeria incurred by the employee;
    • Interest on loans for developing an owner-occupied residential house;
    • Leave allowance, which is computed as 10% of annual basic salary subject to a maximum of N7, 500 per annum.
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    Return Member Answered on August 10, 2016.
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