Hi,
I purchased some winter tires for a vehicle that is used partly for work. This vehicle did not have winter tires when I bought it.
Is this an acquisition, or would it be included as a maintenance expense? It will last more than 1 year (hopefully), which makes it seem like a capital expense. Also, I didn't originally have a set of winter tires. However, tires are consumable, like brakes, and do not last nearly as long as the car itself...which makes it seem like a current expense, and should be claimed as a maintenance expense. Anyone have a reference that would make this clear for me?
Secondly, now that I have the set of winter tires/wheels....in the future, if i need a new set of tires because the tread has worn....wouldn't that be a maintenance expense? I think so because I already owned a set, and it needed replacing because of wear.
Any thoughts? Thanks!
I purchased some winter tires for a vehicle that is used partly for work. This vehicle did not have winter tires when I bought it.
Is this an acquisition, or would it be included as a maintenance expense? It will last more than 1 year (hopefully), which makes it seem like a capital expense. Also, I didn't originally have a set of winter tires. However, tires are consumable, like brakes, and do not last nearly as long as the car itself...which makes it seem like a current expense, and should be claimed as a maintenance expense. Anyone have a reference that would make this clear for me?
Secondly, now that I have the set of winter tires/wheels....in the future, if i need a new set of tires because the tread has worn....wouldn't that be a maintenance expense? I think so because I already owned a set, and it needed replacing because of wear.
Any thoughts? Thanks!
