Show download pdf controls
  • Calculating a capital gain or capital loss for a depreciating asset in a low-value pool


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

    End of attention

    There are separate rules for depreciating assets that have been allocated to a low-value pool.

    You make a capital gain if the depreciating asset's termination value is more than its cost. The amount of the capital gain is calculated as:

    (Termination value − cost) × (1 − taxable use fraction)

    • 'taxable use fraction' -the percentage of the asset's use that is for producing your assessable income, expressed as a fraction. This is the percentage you reasonably estimate at the time the asset is allocated to the low-value pool.

    You make a capital loss if the depreciating asset's cost is more than its termination value. The amount of the capital loss is calculated as:

    (Cost − termination value) × (1 − taxable use fraction)

    Last modified: 25 Feb 2020QC 27448