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Sam
Sam, Accountant
Category: Tax
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We run a ltd company as estate agents and letting estate

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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

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 1 year 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 1 year ago.
please note we do own these properties that we rent
Customer: replied 1 year ago.
sorry we do NOT own these properties

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 1 year ago.
sorry last thing - so do we still show depreciation of the assets on the balance sheet

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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