Under the UCA, there are a number of steps in working out your deduction for the decline in value of a depreciating asset:
Is your asset a depreciating asset covered by the UCA? |
|
Do you hold the depreciating asset? |
see Who can claim deductions for the decline in value of a depreciating asset? |
Has the depreciating asset started to decline in value? |
see When does a depreciating asset start to decline in value? |
What method will you use to work out decline in value? |
|
What is the effective life of the depreciating asset? |
see Effective life |
What is the cost of your depreciating asset? |
|
Must you reduce your deduction for any non-taxable use? |
see Decline in value of depreciating asset used for non-taxable purpose |
Some of these steps do not apply:
- if you choose to allocate an asset to a pool
- if you can claim an immediate deduction for the asset
- to certain primary production assets
- to some assets used in rural businesses.