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In Canada, the Harmonized Sales Tax (HST) paid on a lease is typically expensed as part of the lease payments. For businesses, this means the HST can usually be claimed as an input tax credit (ITC) if the lease is for commercial use. However, if the lease is considered a capital lease, the treatment may vary, and the HST could potentially be capitalized. Always consult with a tax professional for specific situations.
What else can I help you with?
Is sales tax paid for business equipment capitalized or depreciated?
Normally, purchases for supplies and equipment used in the business (not for re-sale) are subject to sales tax. Could vary by state.AnswerI think you meant to ask if the sales tax was expensed or capitalized. Any sales tax paid on equipment is considered to be part of the cost of the asset. Therefore its both capitalized and depreciated.
How do you record the purchase of a franchise?
For purposes of US GAAP, payments made for an initial investment in a franchise are capitalized as a long-lived intangible asset. These can be capitalized and then amortized over the life of the franchise agreement. Franchise royalties and other maintenance costs paid periodically should be expensed in the period they are used, and not necessarily in the period paid. For example, if a franchisor makes an annual payment in December 2012 to cover 2013 royalties, that payment should be expensed in 2013.
Can a coporation deduct a lease payment?
Yes, corporations can deduct lease payments. Property lease payments and vehicle lease payments are deductible in the year paid or accrued.
How are the stock issuance costs handled?
Stock issuance costs, which include expenses like underwriting fees, legal fees, and registration costs, are typically accounted for as a reduction to the additional paid-in capital in the equity section of the balance sheet. These costs are not expensed immediately but are instead deducted from the proceeds of the stock issuance. This treatment aligns with accounting standards that require these costs to be capitalized as part of the equity transaction. Consequently, the net effect is a decrease in the total proceeds recorded from the issuance of the stock.
Is a property tax bill same as rent bill?
Rent bill is for the lease or rent to live in an apartment or house and is paid by the person living there. A property tax bill is for taxes on the property and is paid by the owner.
Where are operating leases recorded in financial statements?
Operating lease is that kind of lease which is not done for entire useful life of assets and only lease rental are paid and expensed through income statement.
What is capitalized lease obligations?
Capitalized lease obligations refer to lease agreements where the lessee records the leased asset as a capital lease on their financial statements. This means the lessee treats the leased asset as if it were purchased with a loan, and includes the lease payments as both an asset and a liability on their balance sheet.
What is off-balance sheet financing?
The most common example would be a lease of equipment. Since the equipment is treated like a rental, the asset and the corresponding liability are not shown on the balance sheet. Lease payments are expensed as paid and the lease obligation would be disclosed in a note to the financial statement.
Is sales tax paid for business equipment capitalized or depreciated?
Normally, purchases for supplies and equipment used in the business (not for re-sale) are subject to sales tax. Could vary by state.AnswerI think you meant to ask if the sales tax was expensed or capitalized. Any sales tax paid on equipment is considered to be part of the cost of the asset. Therefore its both capitalized and depreciated.
How do you record the purchase of a franchise?
For purposes of US GAAP, payments made for an initial investment in a franchise are capitalized as a long-lived intangible asset. These can be capitalized and then amortized over the life of the franchise agreement. Franchise royalties and other maintenance costs paid periodically should be expensed in the period they are used, and not necessarily in the period paid. For example, if a franchisor makes an annual payment in December 2012 to cover 2013 royalties, that payment should be expensed in 2013.
What is lease obligation?
it is lease paid on capital invested
Can a landlord break a rental lease because you paid your rent late?
If you paid your rent late, he didn't break the lease - you did. He can now move to terminate the lease.
What are the risks of cosigning a lease?
The risk of cosigning on a lease is that the cosigner is responsible for the rent for the leased property even if the other signers do not pay the rent. The landlord can go after one or all of the cosigners on a lease to get rent paid if the lease is not paid for the full term.
What should be capitalized in the sentence The price paid?
Only the T in the. It should be -- The price paid
Can a coporation deduct a lease payment?
Yes, corporations can deduct lease payments. Property lease payments and vehicle lease payments are deductible in the year paid or accrued.
Can a lease be paid off early?
In many cases, yes. You will have to look into the terms of your specific lease to be certain.
What happens when lease cannot be paid back?
The vehicle will be repossessed and the leasor will be held responsible for the unpaid balance of the lease.
