Car Insuranse

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ca
21 Points Posted on 25 April 2021

I have purchased new car in feb 2021 and old car is sold can i take insurance paid of both car as deduction or only one car is allowed??

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On 25 April 2021 at 18:34 Report
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Quick Summary
If you've bought a new car and sold your old one, you might be wondering about tax deductions for car insurance. Insurance paid for a business car can be claimed as an expense. For a new car, the insurance premium is typically added to the car's capital cost, allowing for depreciation. The insurance paid for the old car, however, can usually be treated as a revenue expense.

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Chartered Accountant
24588 Points Posted on 25 April 2021
The premium paid for Car Insurance is allowed to be treated as an expense if the car is being used for the purpose of business.
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On 25 April 2021 at 19:12
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Practising CA
8954 Points Posted on 26 April 2021
Insurance paid for new car will be capitalized into the cost of the car under fixed assets. You will get depreciation for the new car. however old car insurance expense shall be treated as revenue expenditure.
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On 26 April 2021 at 00:53

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