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We run a ltd company as estate agents and letting estate

Resolved Question:

Hi
We run a ltd company as estate agents and letting estate agency- part of our business is to rent a property from the landlord and then sublet to tenants. We then provide furniture such as beds and fridges etc. Question - would the furniture cost be an expense or a asset when preparing our accounts. thank you
Submitted: 4 months ago.
Category: Tax
Expert:  Sam replied 4 months ago.

HI

Thanks for your question = I am Sam nd I am one of the tax experts here on Just Answer.

No you would either claim 10% wear and tear (10% of gross rents) to represent the furnishings OR could claim for the like for like replacement value = but never the initial purchase price.

But for accounts purposes they would be recorded on the asset sheet

Let me know if I can assist with this question furtehr, or, if you have all that you need, it would be appreciated if you could rate the level of service I have supplied, or click accept.

Thanks

Sam

Customer: replied 4 months ago.
Hiso if it is a asset do we allow for depreciation on the accounts, also I thought the wear and tear scheme came to an end April 2016
Customer: replied 4 months ago.
please note we do own these properties that we rent
Customer: replied 4 months ago.
sorry we do NOT own these properties
Expert:  Sam replied 4 months ago.

Hi

Thanks for your response

I am aware that you do not won the properties but you are sub letting them and furnishing them - the wear and tear has not ceased its been reformed from April 2016 - and its not like for like on replacement - but you did not indicate your accounting year (so apologies for not also adding in the new reform information more clearly)

Thanks

Sam

Customer: replied 4 months ago.
sorry last thing - so do we still show depreciation of the assets on the balance sheet
Expert:  Sam replied 4 months ago.

HI

Yes you do as you need to identify this purely for your accounts purposes as part of the balance sheet

Let me know if I can assist further - but if you have all you need, it would be appreciated if you could rate me for the level of service I have provided (or click accept)

Thanks

Sam

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