Good news the instant asset write off for 20k is now law.
As we have explained before, it is a tax deduction for small business and not a refund.
Small business means you must have turnover of less than $2m.
Small businesses can immediately deduct one or more assets costing less than $20,000 purchased since 7.30pm 12 May 2015 in the financial year of purchase.
The deduction is claimed in the income year in which the asset is first used or installed ready for use.
Late changes by the ATO
The instant asset write-off threshold has increased to $20,000 (up from $1,000). This allows you to immediately deduct the business use portion of a depreciating asset that costs less than $20,000.
The changes apply
- to assets acquired after 7.30pm on 12 May 2015 until 30 June 2017,
- on a per asset basis, so several assets each costing less than $20,000 would qualify,
- to new and second hand assets.
Can you still write of the asset if it costs more than 20k?
No when an asset costs more than 20k (which can’t be immediately deducted) will continue to be deducted over time using a small business pool.
The low pool value threshold will also increase to $20,000. This means that an immediate deduction is available if the pool balance is less than $20,000 at the end of an income year.
For all your business bookkeeping, Accounting, Bas return and taxation services call Tax Accounting Adelaide on 83374460.
Break free with Tax Accounting Adelaide Services call us on 83374460
- Sole trader, Partnership, Company and Trust Tax and BAS returns;
- Self Managed Super Funds;
- Bookkeeping and Choosing Accounting Software;
- New business Start ups Advise;
- Specialising in personal training businesses;
- Improving your business through our business blood test check up;
- We help you get leads with our own business networking events.
More than just Bookkeeping, Bas returns and Tax returns – At Tax Accounting Adelaide we use accounting to grow your business
At Tax Accounting Adelaide we can help your Business use accounting to grow your business