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.
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