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Ryan Defer Michael Monaghan Jeremy Sikkema
October 15, 2018 Article 3 min read
Whether transaction costs should be capitalized or expensed has been a contentious issue with the IRS. Here's our breakdown: How to determine capitalized acquisition costs, take safe harbor election for certain success-based transaction fees, and handle startup expenditures.
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Should acquisition costs be capitalized or expensed?

This question has been a thorny one. If you're purchasing a business, you'll want to know how to handle capitalized acquisition costs, safe harbor election for certain success-based transaction fees, and startup expenditures.

Learn more about the tax treatment of acquisition costs. In this article, our experts share insights about:

  • Whether acquisition costs should be capitalized or expensed
  • Expenses considered capitalized acquisition costs
  • Success-based transaction fees
  • Transactions eligible for safe-harbor election
  • How to handle start-up expenditures

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