car hire

car hire

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If a person hires out cars to accidents -- as a courtesy car would the cars he buys be treated as cost of sales?

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By johngroganjga
14th May 2015 16:28

Hires them out to who?

But no. Hire cars are fixed assets - or possibly stock, but certainly not revenue expenses to be written off as incurred.

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By colaba
14th May 2015 16:35

he deals with accidents, recovers the damaged car then hires out the courtesy car till the accident vehicle is fixed

 

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By johngroganjga
14th May 2015 16:42

Thank you. That is clearer, but does not affect the answer to your question.

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By ChrisScullard
15th May 2015 10:17

Are the vehicles not leased on an operating lease? It would be very unusual if they weren't

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