P15 Intangible depreciating assets first deducted

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

Did you start to deduct the decline in value of any intangible depreciating assets?

Stop: If you are eligible to enter or continue in the STS and you have chosen to do so at item S1, do not complete this item.

You need to know

The following intangible assets are regarded as depreciating assets (as long as they are not trading stock):

• certain items of intellectual property
• computer software (or a right to use computer software) that you acquire, develop or have someone else develop for your use for the purposes for which it is designed (in-house software)
• mining, quarrying or prospecting rights and information
• spectrum licences
• datacasting transmitter licences.

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 that you use the asset for a taxable purpose, such as for producing assessable income.

At item P15 you need to show the cost of all intangible depreciating assets for which you are claiming a business deduction for decline in value for the first time. If you have allocated any intangible 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 P15. Do not reduce the cost for estimated non-taxable use.

Expenditure on in-house software that you allocated to a software development pool is not shown at item P15.

For more information on decline in value, cost, low-value pools, in-house software and software development pools, refer to the publication Guide to depreciating assets 2003–04 (NAT 1996–6.2004).

P15 Amounts exceeding $75,000

If you have included an amount of more than $75,000 at item P15, you need to complete and attach a Capital allowances schedule 2004. For more information, refer to the publication Capital allowances schedule 2003–04 and instructions (NAT 4089).