Beer and Wine License

[newbie]

Sorry Bob, a duh moment, you did say that in your original post didn't you?!

If an annual license I would expense, if more than one year I would prorate per year.

[BOB W]

OK>>>>> One less return to do. 15 more to go...............................

[taxea]

Sorry Bob, a duh moment, you did say that in your original post didn't you?!

If an annual license I would expense, if more than one year I would prorate per year.

I agree...think of insurance and other items that are paid for in advance. I would prorate it.

[Davc]

It is a 197 intangible. From the list in TTB

• Licenses, permits, or other rights granted by a governmental
unit or agency.

As for materiality, we don't have enough information to make that decision even from a GAAP standpoint. As for the IRS I don't have the cite handy but their definition is that it's material if it changes the timing of a deduction. There is no mention of any dollar figure.

[JohnH]

I'd still expense it (I might reconsider if his expected annual gross receipts were under $40,000 or so, but that isn't likley).

[BOB W]

I'd still expense it (I might reconsider if his expected annual gross receipts were under $40,000 or so, but that isn't likley).

Thanks everybody for your replies...................