Organizational expenses.
Organizational expenses. Section 709(b)(2) of the Internal Revenue Code defines organizational expenses as expenses which:
(1) Are incident to the creation of the partnership;
(2) Are chargeable to capital account; and
(3) Are of a character which, if expended incident to the creation of a partnership having an ascertainable life, would (but for section 709(a)) be amortized over such life.