what expenses may a partnership elect to amortize
may elect to expense $2,500 of the organizational costs and amortize the remaining $50,000 over 180 months, beginning in the month the partnership begins business. Sigma cannot expense the full $5,000 allowed by the statute because its organizational expenses exceed $50,000 by $2,500. Therefore, the maximum deduction of $5,000 is reduced by this $2,500 excess, leaving an expense of $2,500. Consequently, Sigma may claim a $2,500 current expense and an amortization deduction of $556 ($50,000/180 months Â± 2 months) on its first Form 1065.