3 ms·
assets are not expenses. (that's why it called assets) some assets can be depreciated over years. some small assets (like printer, laptop) - can be written off
by hippich 9y ago
assets are not expenses. (that's why it called assets)
some assets can be depreciated over years. some small assets (like printer, laptop) - can be written off in one year... but amount you would save on it is negligible.
- bduerst 9y agoAsset purchases are expense. It's a way to get cash out of a company to avoid paying taxes. Money launderers will sell themselves electronics at a 5-10x markup on Amazon, for example, to get the cash out.
- hippich 9y agoThis is Cost of Goods Sold (this is an expense) To get there you need to acquire Goods to Sell first. Either way, it is not applicable to what parent was saying. What typically people mean in these situations is that "I can buy a car in the name of my corporation tax free, I can replace home AC unit in the name of corporation tax free" etc. And that is very wrong. (I am here talking about accounting meaning of word "expense")