• Completing the capital allowances schedule 2005

    Attention

    Warning:

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

    End of attention

    Unless you are an STS taxpayer or an individual taxpayer not carrying on a business, you need to complete a Capital allowances schedule 2005  (NAT 3424-6.2005) if you had more than $15,000 at any of the following labels on your income tax return:

    Label

    Where label found

    Depreciation expenses
    (see note below)

    All tax returns except fund tax return

    Deduction for decline in value of depreciating assets

    Company and fund tax returns only

    Low-value pool deduction

    Tax return for
    individuals only

    OR

    more than $75,000 shown at either of the following labels:

    Label

    Where label found

    Intangible depreciating assets first deducted

    All tax returns

    Other depreciating assets first deducted

    All tax returns

    OR

    more than $1,000 shown at either of the following labels:

    Label

    Where label found

    Deduction for project pool

    All tax returns except fund tax return

    Business deduction for project pool

    Business and professional items section of tax return for individuals

    Note

    You do not include information in the Capital allowances schedule 2005  about depreciating assets that are subject to the STS capital allowances rules (see The simplified tax system - a guide for tax agents and small businesses for information about the STS capital allowances rules).

    Accordingly, if you are exiting the STS or have previously exited the STS and are claiming a deduction in respect of an STS item at the Depreciation expenses label (for example, in relation to a continuing STS pool), you do not need to complete the schedule if the amount

    at the label relates entirely to STS items. However, if the amount relates to both STS items and UCA items you will need to complete the schedule but, in doing so, assets subject to the STS rules are to be disregarded.

    You should use Worksheet 1 - depreciating assets and Worksheet 2 - low-value pool to help you complete your income tax return and the schedule.

    Last modified: 01 Oct 2006QC 27597