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A self-employed individual under the simplified direct estimation scheme asks whether they can deduct the purchase of a chainsaw. The tax authorities clarify that the acquisition is a tangible fixed asset and the expense must be accounted for through depreciation rather than the total purchase price.
This clarification confirms that capital expenditures for tools must be capitalised and depreciated over their useful life, rather than being deducted as immediate operating expenses.
The tax team reviews your specific situation.
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