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Is there a difference between expensing and capitalizing allowable costs for the computation of COGS?

April 26, 2017allowable capitalizing COGs computation costs expensing

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Is there a difference between expensing and capitalizing allowable costs for the computation of COGS?

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A taxable entity that is subject to IRC Sections 263A, 460, 471 or 472 may elect to capitalize or expense the costs allowed for franchise tax reporting in computing COGS. The election to capitalize or expense is made by filing the franchise tax report using one method or the other and is effective for the entire period upon which the report is based and may not be changed after the due date of the report.