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I didn't think you could spend revenue directly on assets without booking it as profits and paying tax on it. My understanding was you can discount part of the
by benmmurphy 9y ago
I didn't think you could spend revenue directly on assets without booking it as profits and paying tax on it. My understanding was you can discount part of the cost of an asset each year against revenue but not all at once.
- gnicholas 9y agoDepends on what you're spending on. If you're spending on capital equipment, it's depreciated and spread over many years. But if it's discounting your sales so that you have razor-thin profit margins, then you're just cutting your income which directly cuts your current-year taxes.