USA Capitalized Costs

[Jason Taylor]

My company just bought three trucks at an auction. We flew out to pick up the trucks and then drove them back to our shop. Denver to Carson City.

Can I capitalize all costs associated with getting the trucks back to my shop:

Plain tickets
Fuel
Meals
Hotel

Thanks!!

 

[kirby]

Yes, as long as the cost is roughly the same as if you had used the least expensive alternative.

 

[SSM0011]

In general the total cost of an asset includes ALL of its acquisition costs including sales taxes, shipping, et al...but those meal expenses are the problem because they are not fully deductible under the tax code. You could throw 1/2 of them against the asset and the other half to an account called non-deductible meal expenses so when tax returns are prepared the preparer will know not to deduct that expense to calc taxable income.