How can we use the fixed asset write-off as a tax deductible cost after changing the office space?Tags: amortization, fixed assets, tax deductible cost Categories: FAQ, RSS
I am looking for tax advice for our Polish Company. We are a UK holding company that owns 100% the shares of our Polish Company. We are a recruitment company and I need tax advise for local trading and what can be done for recharging.
I have two immediate questions and depending on the work from yourselves will go into further tax advice for the company as we are looking to expand and also make large profits so need to tax proof ourselves in the best method.
At the end of 2010 / beginning of 2011 we changed office space and because of this move we wrote off the fixed assets relating to the old office, our current advisor said that this could not be used as a cost to reduce the CIT payable which I don’t understand as the depreciation on this asset was previously used as a tax deductible cost, so the question is how can I use this asset write-off as a tax deductible cost.
Answer: In general write off of fixed assets in case of investment in a in the third party’s fixed assets is extended for 10 years and when the movement from the space where the investment was made happens before this period ends, unfortunately further write off (after movement/changing office in your case ) is not possible.
However we cannot be sure this above is your case as we do not know a few details:
1. What fixed assets are the subject of your questions?
2. Can you please send the historical data showing amortization of this asset ?