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during the years at issue properly belong to the corporation and
not petitioner.
Moreover, those expenses were nondeductible, preopening
expenses. See sec. 195; Richmond Television Corp. v. United
States, 345 F.2d 901, 907 (4th Cir. 1965), vacated and remanded
per curiam on other grounds 382 U.S. 68 (1965). Startup
expenditures generally cannot be deducted or amortized except as
allowed by section 195(a), which permits an election to amortize
them over a period of 60 months, starting with the month in which
an active business begins. Startup expenditures are defined as
amounts paid or incurred in connection with: (1) Investigating
the creation or acquisition of an active trade or business; (2)
creating an active trade or business; or (3) any activity engaged
in for profit in anticipation of the activity’s becoming an
active trade or business. See sec. 195(c)(1)(A). Startup costs
include advertising, travel, and other expenses incurred in
lining up prospective distributors, suppliers, or customers, and
salaries or fees paid or incurred for executives, consultants,
and similar professional services which are incurred after a
decision is made to establish a business and before the business
begins. See H. Rept. 96-1278, at 10, 11 (1980), 1980-2 C.B. 709,
712.
Petitioner acknowledged that there were no investors and no
income, the parties did not have any plans or facilities for
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