Business Expenses and Sales Tax

[sports222]

When you are calculating the deduction for business purchases such as computers or meals/entertainment, do you include sales tax paid on the business purchases when adding up the total?

[rangerj]

The total expense, including the sales tax, is deductible or capitalizable. The meals and entertainment are subject to reduction, and assets, such as computer equipmet, is capitalized and depreciated over its useful (statutory) life.

[mwcpa]

I concur with ranger... sales tax is added to the cost of the item purchased and is part of the cost basis (for capital assets) or the current year expense.