How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask Adam Hunt Your Own Question
Adam Hunt
Adam Hunt, Accountant
Category: Tax
Satisfied Customers: 451
Experience:  FCCA, FFA, FFTA
Type Your Tax Question Here...
Adam Hunt is online now

I run a partnership and am about to buy a 2nd hand van. I

This answer was rated:

I run a partnership and am about to buy a 2nd hand van. I wish to account for it all in one go as an expensed purchase, is this a legitimate method or do I have to depecriate it as an asset?
JA: What are the assets here? Are they current or long-term assets?
Customer: don't know if that is a relevant question
JA: Anything else you want the Accountant to know before I connect you?
Customer: no

Hi, I am one of the experts. Van is an asset which has economic useful life of more than 1 year so this is why we need to capitalize it and claim only capital allowance for tax and depreciation in accounts. Hope i have answered your question?

Customer: replied 1 year ago.
Need? I would be happy to take the expense in one year. So I am interested to know if this an option of I
HAVE to capitalise it?

What is the value of this expense in terms of money may i ask?

Customer: replied 1 year ago.
up to 9,0000

You cannot expense such spending in one year I am afraid. You have to capitalize it.

Customer: replied 1 year ago.
ok thanks, ***** ***** the question

Please do rate me before you leave. Thank you

Adam Hunt and other Tax Specialists are ready to help you