12-11-2009, 04:48 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by LapTop</i>
<br /><b>22. Depreciation.- </b> (1) Subject to this section, a person shall be allowed a deduction for the depreciation of the personâs depreciable assets used in the personâs business in the tax year.
It Means u cant depreciate Inventory Items.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Correctly replied, No depreciation is to be charged on inventory, since cars held for sale in the showroom are to be considered as inventory.
However, if used cars are being sold, then market value is to be compared with the cost of car, in case of MV lesser than cost, loss is to be claimed while the same is sold.
Regards,
Regards,
<br /><b>22. Depreciation.- </b> (1) Subject to this section, a person shall be allowed a deduction for the depreciation of the personâs depreciable assets used in the personâs business in the tax year.
It Means u cant depreciate Inventory Items.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Correctly replied, No depreciation is to be charged on inventory, since cars held for sale in the showroom are to be considered as inventory.
However, if used cars are being sold, then market value is to be compared with the cost of car, in case of MV lesser than cost, loss is to be claimed while the same is sold.
Regards,
Regards,
