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  • Applying the $20,000 instant asset write-off?

    This tax time, your small business clients with a turnover of less than $10 million can write off assets costing less than $20,000 each in their 2016-17 return. All simplified depreciation rules will apply to assets when choosing this method.

    We have identified some tax agents have under-claimed by not applying all the simplified depreciation rules. To use simplified depreciation rules correctly you must:

    • write off eligible assets costing less than $20,000 each
    • pool most other depreciating assets that cost $20,000 or more
    • write off the small business pool balance if it is less than $20,000 at the end of an income year
    • only claim a deduction for the portion of the asset used for business or other taxable uses.

    The $20,000 write-off threshold now applies until 30 June 2018.

    See also:

    Last modified: 10 Jul 2017QC 52861