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  • P16 other depreciating assets first deducted

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Small business entities using the simplified depreciation rules - do not complete this item.

    Did you start to hold any other depreciating assets in 2008-09 for which you can claim a deduction for decline in value?

    No

    Go to item P17 Termination value of intangible depreciating assets.

    Yes

    Read on.

    You need to know

    A depreciating asset that you hold starts to decline in value from the time you use it or install it ready for use for any purpose, including a private purpose. However, you can only claim a deduction for the decline in value to the extent you use the asset for a taxable purpose, such as for producing assessable income.

    At item P16 you need to include the cost of all depreciating assets (other than intangible depreciating assets) for which you are claiming a business deduction for the decline in value for the first time.

    If you have allocated any depreciating assets with a cost of less than $1,000 to a low-value pool for the income year, you also need to include the cost of those assets at item P16. Do not reduce the cost for estimated non-taxable use.

    For more information on decline in value, cost and low-value pools, see the Guide to depreciating assets 2009.

    Completing this item

    Step 1 Add up the costs.

    Step 2 Write the total at J item P16 on page 4 of your schedule. Do not show cents.

    Is the amount at J greater than $75,000?

    No

    Go to P17 Termination value of intangible depreciating assets.

    Yes

    You need to complete and attach a Capital allowances schedule 2009. For more information, see the Capital allowances schedule instructions 2009.

    Last modified: 27 Apr 2010QC 21791