Depreciation Idea / Question?

[AndrewS]

From: Andrew S


I have an idea.

I know it is possible to purchase a dishwasher with repayments over a period of time.

If I were to purchase a dishwasher this way for an IP, can I depreciate the total value of the purchase, even though I do not pay the full amount for some time?

Thanks

AndrewS

 

[duncan_m]

Reply: 1
From: Duncan M




Andrew, most definitely.

Technically you own the dishwasher and thus are entitled to depreciate it.
Just because you have purchased it on a hire purchase scheme or similar in
no way detracts from your ownership of the asset and thus your right to
depreciate it.

Duncan.

 

[duncan_m]

Reply: 1.1
From: Duncan M




ps.. Dont forget to claim the interest on the Hire Purchase scheme as a
deduction in the year its incurred.

Duncan

> -----Original Message-----
> From: propertyforum Listmanager
> [mailto:[email protected]]
> Sent: None
> Subject: RE: Depreciation Idea / Question?
>
>
> From: Duncan Margetts <[email protected]>
>
>
>
> Andrew, most definitely.
>
> Technically you own the dishwasher and thus are entitled to
> depreciate it.
> Just because you have purchased it on a hire purchase scheme
> or similar in
> no way detracts from your ownership of the asset and thus
> your right to
> depreciate it.
>
> Duncan.
>
>
> To reply: mailto[email protected]
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[AndrewS]

Reply: 1.1.1
From: Andrew S


Thanks for that duncan. Nice to know I'm not too way off the mark.