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  • Guidelines for the use of the low-value pool worksheet

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    Warning:

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

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    The low-value pool worksheet (Worksheet 2) is the second page of the file which can be downloaded here.

    Primary production and non-primary production-use a separate worksheet for each category of income.

    Description of low-value plant-low-value plant is plant that you have already (or could have) depreciated using the diminishing value method to an undeducted cost of less that $1,000. It is also known as low undeducted-cost plant. See Plant that can be allocated to a low-value pool and Plant that cannot be allocated to a low-value pool.

    Assessable income use-you must estimate the percentage of business use for low undeducted-cost plant and low-cost plant you allocate to a low-value pool. Also you do not include in the disposal proceeds or termination value the percentage that you estimated the plant would be used for non-income-producing purposes. See Plant used partly for non-income-producing purposes and Disposal of an item of plant from a low-value pool.

    Description of low-cost plant-low-cost plant is an item of plant you acquired after 1 July 2000 that cost less than $1,000. See Plant that can be allocated to a low-value pool, and Plant that cannot be allocated to a low-value pool.

    Adjustments-the cost of an item of plant for income tax depreciation purposes may differ from its cost to you. For adjustments that you may have to take into account see Adjustments to cost for depreciation purposes.

    Termination value-generally, the termination value of plant is its sale proceeds less the expenses reasonably attributable to the sale. However, in some cases special rules apply, see the meaning of termination value

    The letters N, O and P on the worksheet correspond to labels on the Depreciation schedule 2001 You do not need to complete a Depreciation schedule 2001 if you are a small business taxpayer as defined under Small business taxpayers. If you are not a small business taxpayer within the definition and you are carrying on a business and claim a deduction for depreciation of more than $1,000, you will need to complete the Depreciation Schedule 2001. The worksheet will assist you to complete the schedule. For more information, see the Depreciation schedule 2001 instructions.

    Last modified: 07 Jan 2005QC 27380