Investor Glossary-acquisition costInvestor Glossary-acquisition costInvestor Glossary-acquisition costInvestor Glossary-acquisition costInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Acquisition Cost

The HTML to link to this page

Acquisition cost is the pretax amount of money it costs to gain title to any property. Acquisition cost usually applies to fixed assets. The acquisition cost accounting amount is always calculated at the amount after all discounts, closing costs, transfer costs, and other adjustments are made. Used in accounting, acquisition cost is also a term applied to IRA withdrawls for any tax penalty free amount applied to buy a first home. Acquisition cost of a first home would, then, be the post-closing cost including any repairs. Acquisition cost adjustments also include financing costs, so the IRA-eligible withdrawl amounts could include some of the mortgage fees required to close. Acquisition cost of a computer purchased for business use is a common question for IRS expense rules: "The entire acquisition cost of a computer purchased for business use can be expensed under Code section 179 in the first year if qualified, or depreciated over a 5-year recovery period." Acquisition cost is a required accounting line item and calculation for any MACRS expenses deducted. Acquisition cost often appears in summaries of a company's cost to acquire customers. Acquisition cost of a customer is really a sales expense in a customer acquisition context.

Rate this acquisition cost definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: average price per share, annual return, 144a, dividends payable, diluted share, 1031 exchange, APR, retained earnings, open position, 401a, 1035 exchange, irrevocable trust, labor relations, stock split, covered put, deferred revenue, liquidity ratio, LIBOR, margin rate, current ratio, per diem, implied volatility, required rate of return, minority interest, phantom income, limit order, deferred tax, cancelled check, inflation, risk management, EBITDA, class C shares, Key Rate Duration, option premium, stock market close, real GDP, ex-dividend date, balance sheet, Zero Cost Collar, quality assurance, in escrow, debt service coverage, FTSE, ex-dividend, wholly-owned subsidiary, reverse mortgage, FICO score, VIX, command economy

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use