What expense category are permits?

The correct expense category for permits may differ depending on the business and the type of permit needed. Therefore there's no one definitive answer to this question. Nevertheless, some common expense categories for permits include:

Construction Permits

Construction permits are typically categorized as a 'construction in progress' or 'capital expenditure'. This is because the permit is required in order to begin construction, and the cost of the permit is typically included in the overall cost of the construction project.

Business Licenses and Permits

Business licenses and permits are typically categorized as 'operating expenses'. This is because they are required to operate the business, and the cost of the license or permit is typically included in the overall operating costs of the business.