Instant Asset Write Off
In HandiTax the Deprecation Worksheet allows you to record instant asset write-offs
See the ATO's Instant asset write-off for eligible businesses for changes that have been made to the legislation.
Instant Asset Write Off cannot be used in the same worksheet as Pooled or Normal Asset Depreciation; you will need to create separate depreciation worksheets.
Enter the instant asset write-off - Acquisition date.
Enter the instant asset write-off - Description.
Enter the instant asset write-off - Value.
The instant asset write-off can be transferred in the normal manner, for example, the Business Worksheet.
Note: Should a date outside the prescribed period and/or an amount above the legislated amount be entered in, you will receive a warning message for you to check the details.
Write Off a General Pool Balance
The General Pool Balance can be written off by inserting a Y in the Write off Pool Balance field.
Note: From 12 March 2020 until 31 December 2020, the instant asset write-off changed.
Threshold: amount for each asset is $150,000 (up from $30,000).
Eligibility: has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).
See the ATO's on Guide to depreciating assets for additional information.
This can be transferred in the normal manner, e.g. the Business Worksheet and to P10 label A, Deduction for certain assets.
Write Off a Low-Value Pool Balance
A low-value pool cannot be claimed under a write-off and must be depreciated for the life of its value. This is the case no matter the balance of the pool.
Note: When using Y, the decline in value calculations is disengaged. Ensure that you remain up to date with any changes to the legislation that may have been made since this article was written.