Do legal expenses become part of the cost of an asset?

ANSWER

Expert Michael Lim's Answer:

 All expenses that contribute to the acquisition and putting the asset into service should be capitalized.

Whether a legal expense is capitalizable depends on whether it falls under the above description. 

For example, legal fees including on the closing statement of a purchase of Real Property are capitalizable.  

Michael Lim, CPA

California

16 yrs experience

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128 Ans.