When the asset’s cost exceeds the instant asset write-off limit
Where the value of the asset is not possible for the instant asset write-off reduction, it will be allotted to the general small business pool and depreciated at a rate of 15 per cent despite the acquisition date during the 2019 year, provided the asset begins to be used or is installed ready for use during the year ended 30 June 2019.
For assets held in the pool at the start of the 2019 year, the opening pool balance will be depreciated at the rate of 30 per cent. Where a balancing adjustment happens during the year, the asset’s termination value must be subtracted from the pool.
Yet, where the closing balance of the Small Business Entity’s general small business pool is less than $30,000 as at 30 June 2019, the Small Business Entity will be qualified to a full deduction for the value of the pool’s closing balance. We understand that the depreciation is complicated for the small business holder. If there are questions, give our team at Rands Financial Services a call we can help you to streamline the process.