You can only claim depreciation to the extent that the asset is used to earn your assessable income. The cost of an item for the purposes of working out your depreciation includes the amount you paid for the asset, plus any additional costs you incurred in transporting and installing the asset and costs relating to getting the asset into a useable condition (such as initial repairs). Moveable plant included in an investment property, such as kitchen appliances, hot water systems and air conditioning units.Office furniture if you maintain an office, either at home or otherwise.Items of technology such as computers, laptops, phones and printers, used in either your business or your job.Plant and machinery used in your business.Tools and equipment which you use in your trade. The type of assets you might look to write-off is extremely varied, depending on how you earn your taxable income, but includes most items with a limited life which can be expected to decline in value over time. You rent out an investment property which contains assets of a capital nature.You are employed in a job and use the asset as part of your job.You run a business and use assets as part of that business.You may be able to depreciate assets if you earn income in any of the following ways: For that reason, many prefer to leave the task of working our tax depreciation to their tax agent but it can't do any harm to understand the basics, so here is our beginner's guide to tax depreciation. This tax deductible write-off is called depreciation.Ĭalculating depreciation can a fiddly and time consuming process because of the complexity of the rules and the need to roll forward calculations on a year by year basis. Instead, you need to write-off the cost of the asset over a period of time, typically several years. As a general rule, if you purchase capital assets for the purposes of earning your income, you can't claim an immediate tax deduction.
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