Which of the following taxes paid by Trevor Products, Inc. can be deducted during 2018?
I.Real estate taxes.
II.Sales tax on purchase of new equipment.

Question

Which of the following taxes paid by Trevor Products, Inc. can be deducted during 2018?
I.Real estate taxes.
II.Sales tax on purchase of new equipment.
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Quizplus · Accepted Answer

Only statement I is correct. Real estate taxes are deductible expenses for businesses. Sales tax on the purchase of new equipment is not deductible as a regular expense, but can be added to the cost basis of the equipment and depreciated over its useful life.

Which of the Following Taxes Paid by Trevor Products, Inc