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taxbeginner000(Enthusiast)Enthusiast
24 July 2022

Hi - I bought a monitor for $400 for working from home usage and would like to include it in my individual tax return using the fixed rate method. I understand that I cannot write off the full $400 as the item is over $300.


How do I choose the number of years to divide the original value of the monitor for write off purposes? (i.e. how many years to depreciate it by).


Another question - I bought a monitor arm. Does this count as furniture or not - so can I write it off using the fixed rate method or not?

23,006 views
8 replies
23,006 views
8 replies

Most helpful response

Most helpful reply

CaroATO(Community Support)Community Support
26 July 2022

Hi @taxbeginner000,


You've 2 choices to depreciate the monitor and arm. You can choose the estimate of effective life and let us know you're using this choice on your tax return at the capital allowance label.


The other choice you have is to use the low-value pool. When you use this choice, you'll diminish the value of the equipment at 37.5% each year. By doing this it'll help you calculate the number of years the equipment will depreciate over.


Have a look on our website where it talks about calculating the decline in value.

All replies

Most helpful reply

CaroATO(Community Support)Community Support
26 July 2022

Hi @taxbeginner000,


You've 2 choices to depreciate the monitor and arm. You can choose the estimate of effective life and let us know you're using this choice on your tax return at the capital allowance label.


The other choice you have is to use the low-value pool. When you use this choice, you'll diminish the value of the equipment at 37.5% each year. By doing this it'll help you calculate the number of years the equipment will depreciate over.


Have a look on our website where it talks about calculating the decline in value.

taxbeginner000(Enthusiast)Enthusiast
1 Aug 2022

Thanks.


In determining the effective life of an asset, do I have to follow this?https://www.ato.gov.au/law/view/document?DocID=TXR%2FTR20144%2FNAT%2FATO%2F00024&PiT=20140806000001



Or can I choose the effective life estimate myself? Can I be penalised for my chosen number of years to depreciate an asset by?

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How many years do I depreciate a monitor I bought for working from home expense | ATO Community