We paid use tax to state, but we did not capitalize it on our fixed asset.
If we treat our use tax as just expense, is that ok or it should be capitalized?
Thank you for your answer in advance.
Have a good day!
I think that the "Use Tax" paid on an asset should be capitalized along with the original asset cost. These costs are part of the original asset and they cannot be expensed, they should to be capitalized and depreciated over the applicable period as permitted by the IRS tax code.