"Richard lives in an apartment which is situated above the restaurant , and one-fifth of the total property expense of £16200 relate to this apartment. repair : decorating the apartment £1320. The property was in a usable state when it was purchased. "
I just wonder why this repair cost should be added? In my view, it is included in legal fees of renewing a short lease, thus we should not adjust it any more, I am confused about it.::>_<::
Ask the Tutor ACCA TX-UK
Another tax adj trading profit
Decorating the apartment has got NOTHING to do with legal expenses! If an expense is incurred in relation to the privately used apartment then it is not a trading expense and will be added back in the adjustment of profits.
Thank you very much.:)
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