Page 14 - Texas Franchise Tax Handbook

Calculation of the Tax (4/7)

Cost of Goods Sold

A B Cost of goods sold generally
includes costs related to the

acquisition and production of
F C tangible personal property and

real property.
E D

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.