DEpreciation - Vehicle Add ons

Diana.Mora.Rey1

(Initiate)Initiate

16 July 2024

HI,

I wanted to seek clarification regarding the recent work done on our new work vehicle, particularly the installation of a Bull bar, LED Lights, roof rack, and a CElfi Boost signal. The total cost of these modifications exceeded $20,000. ( we have set this vehicle for accounting depreciation and enter as an asset)

So I was wondering whether these expenses should be immediately expensed under Repairs and Maintenance or if they can be depreciate as part of the vehicle's cost, allowing us to depreciate them along with the vehicle at the same rate?

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Matt_ATO

(Community Support)Community Support

18 July 2024

Howdy @Diana.Mora.Rey1,

A Bull bar, LED Lights, roof rack, and a CElfi Boost signal can be considered as improvements that increase the value and functionality of the vehicle. Therefore, these costs can be added to the cost of the vehicle and depreciated over the useful life of the vehicle.