Accounting head

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What is the accounting head of following items :

 

Parking lot & lawn made by marriage places -  it is part of land or building ?

 

Replies (12)

acc to me it should be part of land & bldg

It should be capitalized under Buildings and depreciation should be claimed @ 10% on the same.

 

 

Regards,

Devendra Kulkarni

Provide clear answer.

It is part of land or building.

Building is eligible for depreciation. so plz provide clearity...

 

 

 

if u are getting any income from the lawns then it neede to be included under building. but according to me lawns maintenence is an expense and it needs no capatilization. the same is the case with  parking lot . will u get any income from the head. if yes then it can be shown under building. else what is the requirement.  the expense can be written off.

Marriage place is newly established. parking is made for people's vehicle who will attend marriage.

 

there is no separate income income from psrking & lawn.

Marriage place is newly established. parking is made for people's vehicle who will attend marriage.

 

there is no separate income income from parking & lawn.

since it is new established assuming u mean the building then u shold capitalize the entire cost to building then u can claim depreciation,as the source of income is the building. 

Its a Part of Building and Depreciation can be claimed

Parking and Lawn is a part and parcel of the Building, Depreciation must be claimed.

part of   land and building 

u can capitalize the entire amount in building and then claim depreciation on that , as afar as repair and maintenace of parking & lawn  is concerned u can expense it off.

 

Thanks

Vaiibhav Gupta

Parking should be accounted under the head BUILDING and lawn should be accounted under the head LAND. accordingly depreciation should be provided on PARKING only.


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