An immediate deduction for non-business depreciating assets costing $300 or less, MAS Tax Accountants Mascot.
Do you know that you can claim the non-business depreciating assets immediately if cost $300 or less? Speak to MAS Tax Accountants Mascot now.
Under the uniform capital allowance system (UCA), an immediate deduction for assets costing $300 or less is available for certain assets used mainly to produce non-business assessable income. The deduction is not available for any assets used mainly in carrying on a business.
Examples of depreciating assets used to earn non-business income are:
- tools of trade used by an employee apprentice for their trade
- a briefcase purchased by a salary or wage earner for their job
- freestanding furniture purchased by a landlord for their rental property.
To claim the immediate write off of assets, you must use the depreciating asset more than 50% of the time for producing non-business assessable income.
All of the following 4 tests must satisfied under UCA:
- The cost of the depreciating asset is $300 or less.
- You use the asset mainly for the purpose of producing assessable income that is not income from carrying on a business.
- The asset is not part of a set of assets you start to hold in the income year that costs more than $300.
- The asset is not one of a number of identical or substantially identical assets you start to hold in the income year that together costs more than $300.
If any one of the tests is not met, your MAS Tax Accountants can assist you to work out the deduction for the asset which is normally based its on effective life or the asset may be allocated to a low-value pool.
For further reading, please refer to Guide to depreciating assets 2011-2012.
For an appointment, or a confidential discussion of your needs, please contact our Mascot Office today, or call 1300 627 829.
