Importing

[DTS]

What is the proper way to write-off duty taxes that are paid by the business for items of imported?

Separately as "taxes" or don't separate and use as total costs of goods purchased?

Thank you,

Dennis

[BOB W]

Dennis..............

..... I would include it in the COGS. Not as a separate item but as part of the purchase price.

[jimmcg]

If the items in question that are imported are held for resale then import taxes on these items would generally be considered part of inventory cost and not period costs. GAAP generally dictates this in order to facilitate proper matching of revenue and related cost of goods sold.

[DTS]

Taxes

Bob and Jim,

The taxes are paid for items that will be resold. I'll include it, as I thought.

Thank you for your responses.

Dennis