Are you thinking about buying assets?
Are you thinking about buying assets to help your small business grow? Now is the time to buy! If you use the simplified depreciation rules you use the $20,000 write-off threshold.
Simplified depreciation rules can get a bit tricky, so here's how to get it right and make sure you claim everything you're entitled to.1. If you buy assets that cost less than $20,000 claim them in full as a deduction in your tax return at the end of the year.
- 2. For assets that cost $20,000 or more group them into what is called a small business pool.
- In your tax returns claim 15% of the pool in the first year then 30% of the pool each year after that, as a depreciation deduction.
- 3. If the balance of your small business pool falls under $20,000 (before you deduct the 15% or 30%) claim this amount in full as a deduction in your tax return at the end of the year.
If you would like to discuss this further we would love to hear from you.