I was planning on getting a motorcycle in my companies names, but the accountant(she only speaks Chinese) is telling my wife that only “vans” you can amortize. Does this sound correct ?
Also, unrelated to the above, I have a number of clients overseas and the contracts are in English. My wife needs to translate them to Chinese for “the tax authorities”. Does this sound right? Seems weird to me.
PS. I got zero trust in my wife getting anything right when it comes to anything related to money, so does any of the above seem as odd to you as it does to me ?
I don’t know about motorcycles, but I know it’s certainly not limited to vans. My dads company had many company cars, executives often drove around luxury sports cars. It’s one of the ways a CEO in Taiwan can make so little in salary if they’re not big shareholders but still drive a nice BMW.
I know some countries like Italy does not allow anything above a 2 litter engine to be company cars. (I think it’s 2, but if it’s not it’s still limited by some engine size)
On the off note, I believe tangible assets like cars would depreciate. Intangible assets amortize.
As @Andrew0409 noted, do you mean depreciate? You can depreciate any fixed asset (except land) that is used to generate income. How you argue that is up to you.
Yeah, mean depreciate. Basically that’s what I figured as well, although I was open to the posibility that maybe some assets are excluded due to widespread abuse(E.g. scooters and motorcycles not allowed)
Need to check with her again in the morning wtf. Already asked her multiple times why she needs to translate it and she says something to the effect that the accountant said so. Always thought it was weird, but figured maybe it’s some Taiwan thing(although it makes no sense)
So, I talked to the wife yesterday. Apparently in my case it was a) I have no need for it to generate income(I work at home) b) the one in question is a bit excessive as a mere means of transport.
But, we will try to depreciate if and we will see what happens.
I don’t think that’s an issue. My dad had company cars like 2 seaters and a BMW M5.
Just because you work at home doesn’t mean you don’t have to go from point A to point B to say, get supplies for your home office. If you have to use a motorcycle and add mileage to get things for work, go to the airport, meet clients, etc. That should be justifiable.
Yea, I dont know exactly where the issue is. Not sure if the accountant is incompetent, or the wife doesn’t understand what the accountant is saying, or they are both lost.
It is just that I got better things to do than deal with this shit, I just want it to work. Anyway, you are right, I might need to change accountants.
