Is this a capital purchase or spending from income?

benjaminfabi · September 16

Direct quote from client in relation to surplus income availability...

Spending will show a significant increase this year as I have bought a large postcard collection.

I think this purchase will be a capital outlay.

les_cameron · September 16

I suspect it is not normal expenditure so would be excluded when deciding if there was surplus income.

benjaminfabi · September 16

Yeah thanks, that was my track, and that any additions he makes to the collection will be regular spending if it becomes a pattern.

les_cameron · September 17

@benjaminfabi said:
Yeah thanks, that was my track, and that any additions he makes to the collection will be regular spending if it becomes a pattern.

Agree - you need to have excess income over your normal expenditure

Is this a capital purchase or spending from income?

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