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Hello everyone,
I am planning to buy a second-hand trailer for my business. I was wondering if I can depreciate it over three years? The trailer currently costs €1,850. Do I also need to take into account the residual value after depreciation?
Hello everyone,
I am planning to buy a second-hand trailer for my business. I was wondering if I can depreciate it over three years? The trailer currently costs €1,850. Do I also need to take into account the residual value after depreciation?
Yes, you can depreciate it over three years because it is second-hand. The residual value is not important at this stage; you will depreciate it to £0.
If you sell it before the value after depreciation is 0 euros, just sell it from Dexxter. Then the residual value will be automatically adjusted.
But do you mean that you already want to determine a residual value? You don't have to do that. Most people depreciate to 0 euros, even though they know there will be a residual value.
Yes, I thought you could only depreciate to, for example, 500 euros because this is the estimated residual value after 3 years. So you had to guess in advance how much something would be worth afterwards.
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.