Capital allowances schedule instructions 2005-06

Do you need to complete a capital allowances schedule 2006?

Simplified tax system (STS) taxpayers and individual taxpayers not carrying on a business do not need to complete a schedule. Other taxpayers need to answer the questions below. If you answer 'yes' to any part of the questions, you need to complete a Capital allowances schedule 2006.

Question 1: Did you have more than $15,000 at any of the following labels on your income tax return?

Label	Where label found	Yes or No
Depreciation expenses (see note)	All tax returns except fund tax return
Deduction for decline in value of depreciating assets	Company and fund tax returns only
Low-value pool deduction	Tax return for individuals only

Question 2: Did you have more than $75,000 at either of the following labels on your income tax return?

Label	Where label found	Yes or No
Intangible depreciating assets first deducted	All tax returns
Other depreciating assets first deducted	All tax returns

Question 3: Did you have more than $1,000 shown at either of the following labels on your income tax return?

Label	Where label found	Yes or No
Deduction for project pool	All tax returns except fund tax return
Business deduction for project pool	Business and professional items section of tax return for individuals

Note

You do not include information in this schedule about depreciating assets that are subject to the simplified tax system (STS) capital allowances rules - see the publication The simplified tax system - a guide for tax agents and small businesses (NAT 6459) for information about the STS capital allowances rules.

Accordingly, if you are exiting the STS or have previously exited the STS and are claiming a deduction in respect of an STS item at the Depreciation expenses label (for example, in relation to a continuing STS pool), you do not need to complete the schedule if the amount at the label relates entirely to STS items. If the amount relates to both STS items and uniform capital allowance (UCA) items, you will need to complete the schedule but, in doing so, assets subject to the STS rules are to be disregarded.