Depreciation on Car (Showroom)

[Riftaj]

Thank you so much dear,

Rifi

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by faisal_desperado</i>
<br /><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 person’s depreciable assets used in the person’s business in the tax year.
It Means u cant depreciate Inventory Items.

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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,
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