I nee to prepare a memo:

A new client, John Amos, recently formed Johns Premier Steakhouse, Inc., to operate a new restaurant. The restaurant will be a first-time business venture for John, who is a retired veteran. John transferred cash to the corporation in exchange for 100% of its stock, and the corporation has leased a building and restaurant equipment. John has asked you for guidance on the tax treatment of various expenses (e.g., licensing, training, advertising) he expects the corporation to incur during the restaurants preopening period.

Research the tax treatment of startup expenditures, including the point at which a business begins for purposes of determining what expenses are included. Prepare a memo for the client files, describing the results of your research.

A partial list of research aids: 195. Reg. 1.1951.

Instructions: Prepare a memo for the client files, describing the results of your research.