Can Vehicles Be Fully Expensed in 2021?
1 Answers
2021 vehicles cannot be fully expensed at once. Detailed explanation of full vehicle expensing: Under tax laws, companies purchasing vehicles could fully expense them during the period from January 1, 2018 to December 31, 2020 for newly acquired equipment and appliances that did not exceed specified value thresholds. This allowed one-time deduction from taxable income without annual depreciation calculations. Accounting treatment for vehicles purchased in 2021: For 2021 vehicle purchases, input VAT can be continuously deducted. The accounting entry would be: debit fixed assets/input tax, credit bank deposits, with depreciation over four years.