Tommy, an automobile mechanic employed by an auto
dealership, is considering opening a fast food franchise.
If Tommy decides
to acquire the fast food franchise,
any investigation expenses are:
Iris, a calendar year cash basis taxpayer, owns and
operates several TV rental outlets in Florida, and wants
to expand to other states. During 2012, she spends
$14,000 to investigate TV rental stores in South
Carolina and $9,000 to investigate TV rental stores in
Georgia. She acquires the South Carolina operations,
but not the outlets in Georgia. As to these expenses, Iris
Which of the following statements is correct in
connection with the investigation of a business?
Which of the following is relevant in deciding whether