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Can an entity switch from expensing to capitalizing allowable costs for COGS?

April 26, 2017allowable capitalizing COGs costs entity expensing Switch

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Can an entity switch from expensing to capitalizing allowable costs for COGS?

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The election to capitalize or expense allowable costs for COGS is an annual election. If a taxable entity expenses COGS and later elects to begin capitalizing those allowable costs, costs incurred before the first day of the report period upon which the tax is based may not be capitalized.