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  • Plant previously used only for private purposes

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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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    If you use an item of plant for private purposes before you first use it for income-producing purposes-motor vehicles are a common example-you would work out depreciation from the time you first use the plant for private purposes. However, you could claim deductions only for the years you use it to produce assessable income.

    If you use the diminishing value method, deductions in the first year of income-producing use would be based on the plant's undeducted cost at that time.

    If you use the prime cost method, you can claim deductions based only on the plant's cost.

    Last modified: 07 Jan 2005QC 27380