Like financial accounting, most acquired business property must be capitalized for tax purposes.

Question

Quizplus · Accepted Answer

The IRS requires most acquired business property to be capitalized for tax purposes, meaning it must be recorded as an asset on the company's balance sheet and written off over time through depreciation expenses. However, there are certain exceptions and options for small businesses who may be eligible for immediate expensing or bonus depreciation.

Like Financial Accounting, Most Acquired Business Property Must Be Capitalized