$20,000 instant asset write-off

/in /by

This tax time, your small business clients with a turnover of less than $10 million can write off assets costing less than $20,000 each in their 2016-17 return. All simplified depreciation rules will apply to assets when choosing this method.

To use simplified depreciation rules correctly you must:

  • write off eligible assets costing less than $20,000 each
  • pool most other depreciating assets that cost $20,000 or more
  • write off the small business pool balance if it is less than $20,000 at the end of an income year
  • only claim a deduction for the portion of the asset used for business or other taxable uses.

The $20,000 write-off threshold now applies until 30 June 2018.

Reference: https://www.ato.gov.au/Tax-professionals/Newsroom/Income-tax/Applying-the-$20,000-instant-asset-write-off-/