Taxes: expense or liability? (Jason Rennie)

[Wesley]

Peter Grace wrote:
> 
> Based on my understanding of Generally Accepted Accounting Principles
> (GAAP),
> unpaid, accrued taxes are a liability.
> Taxes that you pay are an expense.
> 
> Therefore, when you pay taxes, you reduce your tax liability.
> Dr to Taxes Paid, Cr to Taxes Owed.`
> 
> --
> Peter Grace             web:    http://www.gracefamily.net/
> KB1CVH                  email:  kb1cvh@arrl.net

Thanks, Peter (and Dave and Jason).  Survey says they're an expense, at
least as long as I treat them on a 'pay as you go' basis.  I think my
one ongoing tax liability would be state sales tax for mail order or
online purchases.  We're on the honor system to list these charges and
pay the sales tax once a year when we file state taxes; since that tax
is technically owed when I make an out of state purchase but not paid
for a while, it actually is a liability for a few months.  About
everything else looks like expense.

Again, thanks everyone.

-- 
Wes Sheldahl
wsheldahl@qx.net