Why would a cheque for solicitor fees and stamp duty on the purchase of land and buildings not be treated as an expense?
It has been written into the land and building accounts, rather than an expense, and I am being asked why???
Would have been nice if the text book covered it....
Any help please?
GO.
Because these payments are part of the costs of acquiring the capital asset, not a separate operating expense.
Spot on. This can get complicated though, as initial advice and ongoing advice is treated differently for both accounting and tax purposes her in Australia
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