Yes, the cost of designing injection molds can generally be considered a deductible business expense. For businesses, expenses related to the production of goods, including the design and creation of molds, are often categorized as necessary and ordinary costs of doing business.
These costs can be deducted as part of the cost of goods sold (COGS) if they are directly tied to the manufacturing process. Alternatively, they may be capitalized and depreciated over time if the mold design represents a long-term asset.
However, tax laws can vary depending on the jurisdiction, and specific circumstances may affect the deductibility. It’s advisable to consult with a tax professional or accountant to ensure proper classification and deduction of these expenses according to applicable tax regulations.
Related Conten: Mold Design
Choose us for your custom injection molding needs and experience excellence in every detail. Our China-based factory provides innovative solutions, competitive pricing, and fast turnaround times. Get your custom quote now!
