Income Tax Assessment Act 1997
SECTION 40-440 How you work out the decline in value of assets in low-value pools 40-440(1)
You work out the decline in value of * depreciating assets in a low-value pool for an income year in this way:
Step 1.
Work out the amount obtained by taking 18 ¾ % of the taxable use percentage of the * cost of each * low-cost asset you allocated to the pool for that year. Add those amounts.
Step 2.
Add to the step 1 amount 18 ¾ % of the taxable use percentage of any amounts included in the second element of the * cost for that year of:
Step 3.
Add to the step 2 amount 37 ½ % of the sum of:
Step 4.
The result is the decline in value of the * depreciating assets in the pool.
40-440(2)
The closing pool balance of a low-value pool for an income year is the sum of:
(a) the * closing pool balance of the pool for the previous income year; and
(b) the taxable use percentage of the * costs of * low-cost assets you allocated to the pool for that year; and
(c) the taxable use percentage of the * opening adjustable values of any * low-value assets you allocated to the pool for that year as at the start of that year; and
(d) the taxable use percentage of any amounts included in the second element of the cost for the income year of:
(i) assets allocated to the pool for an earlier income year; and
(ii) low-value assets allocated to the pool for the * current year;
less the decline in value of the * depreciating assets in the pool worked out under subsection (1).
Note:
The closing pool balance may be reduced under section 40-445 if a balancing adjustment event happens.
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