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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;
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    • Retirement gratuities and compensation loss of office;
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    • The cost of passage to or from Nigeria incurred by the employee;
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    • Interest on loans for developing an owner-occupied residential house;
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    • 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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