End of year farm expense 2023 or 2024

Jb1989 · 29-12-2023 07:17PM #1

January to December tax year here.

Possibly paying for a teleporter over the weekend by cheque.

Cheque would be dated 31/12/23.

Obviously money won't then leave account till cheque lodged in new year.

[[[[[[ Question++++ is this a 2023 expense as thats what's on the cheque, or is it 2024 expense as that's when money leaves my account.??? ]]]]]]]]]

Presume 2023 as cheque is dated 23.

Usually do card and bank transfer purchases at year end as they show up instantly on account and statement. Cheque won't show instantly, especially if man does not cash it quick in January.

Thank you

White Clover · 29-12-2023 07:20PM

https://www.boards.ie/discussion/2058328781/end-of-year-farm-expense-2023-or-2024

Once the Invoice is dated '23 it won't matter when the money leaves the account.

martingriff · 29-12-2023 07:26PM

https://www.boards.ie/discussion/2058328781/end-of-year-farm-expense-2023-or-2024

Not the cheque it is when the invoice is dated for

Edit as the first reply said

Jb1989 · 29-12-2023 07:36PM

https://www.boards.ie/discussion/comment/121548009#Comment_121548009

https://www.boards.ie/discussion/comment/121548027#Comment_121548027

Ummm, no invoice from a private farmer selling a machine.

Cheque will be the only paper trail.

Unless we make a homemade invoice with pen and paper to cover our arses.

martingriff · 29-12-2023 07:56PM

https://www.boards.ie/discussion/comment/121548063#Comment_121548063

Let's hope you are not asked for invoice. Are you registered for VAT or the VAT 58 form

Jb1989 · 29-12-2023 10:01PM

No, standard farm income tax and vat rebates for fixed farm assets like most small farmers. I'm sure farmers buy from other farmers without the vat aspect. Unless I'm wrong. Hold on till we see if @Bass Reeves pops up

White Clover · 29-12-2023 11:31PM

https://www.boards.ie/discussion/comment/121548471#Comment_121548471

Cheque book stub would do. You could always put it in as an accrual too.

Jb1989 · 29-12-2023 11:40PM

Yeah was thinking the cheque stub would do in absense of invoice. Just the year of expense I was more unsure of.

Sami23 · 29-12-2023 11:50PM

https://www.boards.ie/discussion/2058328781/end-of-year-farm-expense-2023-or-2024

2023

Jb1989 · 30-12-2023 12:00AM

https://www.boards.ie/discussion/comment/121548783#Comment_121548783

Thanks👍🏽

Bass Reeves · 30-12-2023 01:09AM

https://www.boards.ie/discussion/comment/121548471#Comment_121548471

2023 had a few cheques that were not lodged until March, they obviously were dated in order from the cheque book. Its actually early you could still date cheques for another few week's

😉😉

As an aside it a good idea to keep a screen copy of Donedeal adverts where you buy something that you pay for by cheque or even cash.

Jb1989 · 30-12-2023 10:34AM

https://www.boards.ie/discussion/comment/121548971#Comment_121548971

Ideal. Thanks

hopeso · 30-12-2023 11:51AM

I'm in a similar position, in so far as I have one bill from 2023 still to be paid. It's going to be January before it's paid now. I'll be paying by cheque, and planned to put a December '23 date on the cheque. Would it work if I put a January '24 date on the actual cheque, and put a December '23 date on the cheque stub, which will be used to show the accountant it was a 2023 expense?

Danny healy ray · 30-12-2023 12:30PM

put December 23 on it who ever gets the cheque has 6 months to cash it nothing wrong with keeping few cheques well into next year just write December 23 and put them back with a paper clip

Packrat · 30-12-2023 01:52PM

Is it tax deductible anyway or does it have to be written off over several years?

Anyone know the rules around that stuff?

epfff · 30-12-2023 02:00PM

https://www.boards.ie/discussion/comment/121549938#Comment_121549938

Machinery is 7 or 8 years always get mixed up on which is buildings and which is machinery

Packrat · 30-12-2023 02:26PM

https://www.boards.ie/discussion/comment/121549968#Comment_121549968

Jeeps, trailers, quads all the same?

Building repairs/modification would be a direct cost or capital expenditures?

kk.man · 30-12-2023 04:10PM

I have a blank invoice book here. In the op scenario I write the date, cheque number, payee and purpose.

It's a good idea too for when you are doing up your accounts. You have cheque numbers off bank statements matching. If someone fails to give you an invoice imo that's their fault. If I'm ever asked for the invoice, I have one. It's not like you are trying to hide anything there's a cheque and a machine to prove it. If the the other person is hiding stuff well that's their issue.

OP you decide if it's 23 or 24 accounts irrespective when the cheque is cashed.

Jb1989 · 30-12-2023 04:22PM

https://www.boards.ie/discussion/comment/121550399#Comment_121550399

Fair play for response. Only thing is I'm sure private farmers selling a machine once in a blue moon wouldn't have an invoice to supply. It is a private sale. Not a company of any description. I May look to get an empty invoice book like you though. Either way I prefer card or online transfer payments as bank account is adjusted immediately. Thanks

epfff · 30-12-2023 08:20PM

https://www.boards.ie/discussion/comment/121550058#Comment_121550058

Machinery is machinery.

Repair is current expenditure so all allowed that year. (That's where farmers got caught previously on vat reclaim)

Exception is white goods in rental property.

Silverdream · 31-12-2023 01:11PM

https://www.boards.ie/discussion/comment/121551395#Comment_121551395

What do you mean by "White goods on a rental property". The reason I ask is I've a rental that I had to replace the dishwasher, Microwave and TV last year. I thought I could use the expense of these against the income from the rent.

Bass Reeves · 31-12-2023 01:25PM

https://www.boards.ie/discussion/comment/121553473#Comment_121553473

Yes you can however I think they write-off is over a few years through wear and tear

Silverdream · 31-12-2023 01:35PM

https://www.boards.ie/discussion/comment/121553520#Comment_121553520

feck that's like depreciation, similar to farm machinery is that what you mean? It would be messy to be trying to track white goods like I've had Microwaves that have lasted less than 2 years. I always thought I could use 100% of the cost of the item as an expense.

End of year farm expense 2023 or 2024

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