Get your $20,000 instant asset write-off

 

If you buy an asset before 1 July 2017 and it costs less than $20,000, you can immediately deduct the business portion in your 2017 tax return.

 

You are eligible to claim a deduction for the business portion of each asset (new or second hand) costing less than $20,000 if:

–        you have a turnover less than $10 million (this has increased from $2 million), and

–        the asset was first used or installed ready for use in the 2016-17 income year.

 

Assets that cost $20,000 or more can’t be immediately deducted. They will continue to be deducted over time using a small business asset pool. You write-off the balance of this pool if the balance (before applying any other depreciation deduction) is less than $20,000 at the end of an income year.

 

In the Budget 2017, the government announced an extension of the $20,000 instant asset write-off threshold to 30 June 2018. This extension still needs to be passed in parliament – the threshold currently reduces to $1,000 from 1 July 2017.

 

To find out more please call R A Carroll Accounts on (02) 4735 7122 or

http://www.carrollaccountants.com.au/

 

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