A client, a newly formed partnership, incurred $15,000 in organizational costs and $25,000 in start-up costs during its first year of operations. The partnership began active trade or business on July 1, 2023. Assuming the partnership makes the maximum allowable election under IRC Section 195 and 709, what is the total amortizable amount deductible in 2023?

Correct answer: D. $1,000

Both organizational and start-up costs allow for an immediate deduction of $5,000 each, reduced dollar-for-dollar by amounts exceeding $50,000. Since both are below $50,000, $5,000 of each category can be expensed immediately. The remaining costs are then amortized over 180 months. For 2023, the immediate deduction is $5,000 (organizational) + $5,000 (start-up) = $10,000. The remaining organizational costs are $15,000 - $5,000 = $10,000. The remaining start-up costs are $25,000 - $5,000 = $20,000. Total remaining is $30,000. Amortization for 2023 (6 months) is ($30,000 / 180 months) * 6 months = $1,000. The question asks for the total amortizable amount deductible in 2023, which is the amount amortized, not the immediate expense. My apologies for the miscalculation in the explanation, the question asks for 'amortizable amount deductible' which refers to the portion amortized over 180 months. Let's re-evaluate. The question asks for the 'total amortizable amount deductible in 2023'. This implies the amount of the costs that are subject to amortization and then deducted in 2023. Immediate expense: $5,000 (organizational) + $5,000 (start-up) = $10,000. Remaining organizational costs: $15,000 - $5,000 = $10,000. Remaining start-up costs: $25,000 - $5,000 = $20,000. Total remaining costs to amortize: $10,000 + $20,000 = $30,000. Amortization period is 180 months. The business started on July 1, 2023, so 6 months of amortization in 2023. Amortization deduction for 2023 = ($30,000 / 180) * 6 = $1,000. This is the amount amortized and deductible in 2023.