What Is The Treatment Of Transaction Cost?

What Is The Treatment Of Transaction Cost? For tax purposes, however, transaction costs might be appropriately expensed as incurred, capitalized as a separate intangible asset, included in the basis of shares acquired, included in the basis of other assets, or included in tax-deductible goodwill. How are transaction costs treated for tax purposes? The default rule

How Are Transaction Costs Treated For Tax Purposes?

How Are Transaction Costs Treated For Tax Purposes? The default rule under section 263 is that all transaction costs that facilitate a transaction must be capitalized. An allocation of transaction costs that treats certain costs as other than capitalized can be supported if such an allocation is made before filing the tax return. Are transaction