P16 Other 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 other 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

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, refer to the publication Guide to depreciating assets 2003–04 (NAT 1996–6.2004).

P16 Amounts exceeding $75,000

If you have included an amount of more than $75,000 at item P16, 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).