Page 27 - Texas Sales & Franchise Tax Handook

Calculation of the Tax (4/7)

Cost of Goods Sold

T E Cost of goods sold generally
includes costs related to the

acquisition and production of
$ X tangible personal property and

real property.
S A

There are other cost of goods

sold allowances for certain
industries.

Taxable entities that only sell
services will not generally have

a cost of goods sold deduction.