Tax deduction on shipping costs?

0 ⤊

Tax deduction on shipping costs?

If I buy a piece of equipment online for my business, can I deduct the cost of the equipment + shipping or just the equipment?

2007-03-02 08:09:44 · 2 answers · asked by Josh 1 in Business & Finance ➔ Taxes ➔ United States

2 answers

The entire cost of the equipment (sales tax, installation and shipping) is capitalized.

Then, it is deducted as a Section 179 deduction or depreciated over the life of the equipment.

2007-03-02 09:09:37 · answer #1 · answered by Wayne Z 7 · 0⤊ 0⤋

Cost of Goods Sold are on Schedule A, Line 2, Freight goes on your overflow statement.

2007-03-02 08:16:07 · answer #2 · answered by Amy V 4 · 0⤊ 2⤋