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Truck Lease + HST

ThePlumberThePlumber Member Posts: 1

Hi
I have a scenario which I'd like to see if I can get some advice on please. I have a truck which I am leasing. Each payment I make has HST applied to it.
I currently have been recording the transactions as a Truck Lease category in Liabilities, but I understand it is not good practice to be applying HST to liability items.
I have the option to trade the truck at the end of the lease term (which I will likely do) for a new one and start up a new lease, but i do also have the option to buy the remainder of the truck out at the end of the term too.
What is the best way for me to record this?
Thanks for any guidance.

in Accounting Technical Support

Comments

  • JulianPJulianP Member Posts: 1,002 ✭✭✭

    Hello @ThePlumber ! While we can provide technical support, I'm afraid that we here at Wave Support are not accountants so were are not fit to provide accounting advice. We also wouldn't want to provide incorrect information that could negatively impact your books. I advise you to reach out to a registered CPA for advice on this one to correctly account for a truck lease/purchase.

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