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Coffee shop flooring replacement

Carpet to laminate: repair or capital?

Coffee shop replaces old carpet with laminate. Is this capital or repair?

I could convince myself either way...

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17th Jul 2018 17:44

I vote revenue

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17th Jul 2018 17:59

I vote revenue.

Unless you'd rather have it being capital.

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to lionofludesch
17th Jul 2018 18:13

lionofludesch wrote:

Unless you'd rather have it being capital.

Good point. Start with what you want the tax position to be, then work back & decide.

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to atleastisoundknowledgable...
17th Jul 2018 18:22

atleastisoundknowledgable... wrote:

lionofludesch wrote:

Unless you'd rather have it being capital.

Good point. Start with what you want the tax position to be, then work back & decide.

Sure - he did say he could justify either.

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17th Jul 2018 20:25

The carpet needed replacing, and the fact that it's been replaced by laminate shouldn't matter - it still performs the same function. So I'm leaning on revenue.

I suppose the capital argument might fall upon the element of improvement - it's more aesthetically pleasing, hard-wearing and easier to clean...

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18th Jul 2018 10:07

or course there is the argument that laminate is a health ans safty requirement on the grounds that spills do not fester and it is easier to mop up making it safer.

Our local community center moved from carpet to laminate because OFSTEAD insisted that the playgroup the hired the hall twice a week had laminate. that we claimed made it an improvement

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