[phil_will1]

"...but you don't seem to grasp the fact that income taxes are NOT a 'cost.'"

LOL Amazing spin you have there, jsuati. Ok, there are five major categories of financial transactions: revenue, expense (cost), assets, liabilities, owners equity.

What category would you place taxes in? Assets?

[Your Nightmare]

LOL Amazing spin you have there, jsuati. Ok, there are five major categories of financial transactions: revenue, expense (cost), assets, liabilities, owners equity.

What category would you place taxes in? Assets?

I believe currently due income taxes would be a liability and, actually, if a business has paid more taxes than it owes at the end of the year, it would be listed as an asset.

Go look at any annual report and see if income taxes are listed under expenses.

[justshutupandtakeit]

Taxes on income are a liability determined by profit. Payroll taxes are a cost/expense.

T= T(costs, expenses), Profit is not dependent upon income taxes.