If a Small Business Entity has new assets that are valued at more than the instant asset write-off threshold (which cannot be immediately deducted), these can be placed in the small business simplified depreciation pool (General Pool) and depreciated at 15 per cent in the first income year and 30 per cent each income year thereafter. For certain new assets, you can use an accelerated depreciation rate when you first add them to the pool.
For information on the General Pool depreciation rates and accelerated depreciation, visit the ATO website.
Write Off the General Pool balance
Log in to HandiLedger and Select your entity.
From the View menu, click Depreciation Schedules.
In the Depreciation Schedules window, click Pooling.
On the top pane, highlight the General Pool.
On the bottom pane, highlight the year in which the pool balance is to be written off, and click Write Off.
On the warning message, click OK to proceed with reversing the depreciation journals and writing off the balance.
Click Report to review the report. The Depreciation Pools report will display the pool balance written off. All assets will have W as the Type to indicate that they have been written off.
Undo the write-off
HandiLedger allows you to easily undo a pool write-off.
Log in to HandiLedger and Select your entity.
From the View menu, click Depreciation Schedules.
In the Depreciation Schedules window, click Pooling.
In the Depreciation Pools window, click Undo w/o.
Click OK.
Note: This will reverse all assets written off in the pool. To write off or undo write off, it is advised that you use the specified button in the Depreciation Pools window. Writing off individual assets will not write off any residual amount in the pool as a result of disposals.