Texas Comptroller Denies Taxpayer COGS Deduction for Repairing Customer-Owned Helicopter Parts

• Texas Comptroller denied taxpayer’s cost of goods sold deduction for labor costs on repairing customer-owned helicopter parts
• Rules for unique tax regimes like Texas franchise tax are complex and may lead to compliance errors
• Aprio’s State and Local Tax team can advise on Texas franchise tax and other state and local taxes
• Texas franchise tax is a hybrid tax regime with limited deductions
• Taxpayer in Comptroller’s decision was denied COGS deduction for labor costs on repairing customer-owned helicopter parts
• Decision lacks detailed analysis on ownership of parts by taxpayer

Source: aprio.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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