I have had a storage shed built where I can repair and store my equipment out of the weather and where its safely locked. My Industry Type is 73130 can I claim depreciation on this asset and how as the Depreciation and capital allowances tool doesn't seem to allow me to claim it.
Hi. Unless you receive more definitive advice from another poster, you may have to apply for a private ruling with the ATO. I will offer you two perspectives:
Firstly, just because a depreciating asset is not listed under an Industry Type does not mean it is not deductible. You can search this document for a similar item: https://www.ato.gov.au/law/view/document?DocID=TXR/TR20221/NAT/ATO/00001 For example, this document refers to: "Sheds on land that is used for agricultural or pastoral operations (including machinery sheds, workshop sheds and farm production sheds)" and "Storage sheds, to the extent they form an integral part of bulk handling equipment", which both have an effective (deductible) life of 40 years. There are other sheds but the above two sound closer to your situation. HOWEVER, if you are a small business and your new shed cost $20,000 or less and IF YOUR SHED IS A DEPRECIATING ASSET, you can claim an instant deduction in the year it was purchased & installed (rather than depreciating it over 40 years). https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/instant-asset-write-off
Secondly, however, my impression is your new shed may not be a "depreciating asset" but instead is "Capital Works". If so, it is deductible at 2.5% per year over 40 years. Again, we can refer to this ATO document called ATO ID 2003/600: https://www.ato.gov.au/law/view/document?src=rs&pit=99991231235958&arc=false&start=1&pageSize=10&total=29&num=2&docid=AID%2FAID2003600%2F00001&dc=false&stype=find&df=1346&df=1805&tm=phrase-basic-shed
In summary, if the shed cost more than $20,000, I guess it makes no difference whether the shed is a "Depreciating Asset" or otherwise "Capital Works" because it appears it will be deductible at 2.5% per year regardless of its classification.
If you believe the shed will not have an effective life of 40 years then you probably need to apply to the ATO for a private ruling to ensure it is classified correctly..
Hi. Unless you receive more definitive advice from another poster, you may have to apply for a private ruling with the ATO. I will offer you two perspectives:
Firstly, just because a depreciating asset is not listed under an Industry Type does not mean it is not deductible. You can search this document for a similar item: https://www.ato.gov.au/law/view/document?DocID=TXR/TR20221/NAT/ATO/00001 For example, this document refers to: "Sheds on land that is used for agricultural or pastoral operations (including machinery sheds, workshop sheds and farm production sheds)" and "Storage sheds, to the extent they form an integral part of bulk handling equipment", which both have an effective (deductible) life of 40 years. There are other sheds but the above two sound closer to your situation. HOWEVER, if you are a small business and your new shed cost $20,000 or less and IF YOUR SHED IS A DEPRECIATING ASSET, you can claim an instant deduction in the year it was purchased & installed (rather than depreciating it over 40 years). https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/instant-asset-write-off
Secondly, however, my impression is your new shed may not be a "depreciating asset" but instead is "Capital Works". If so, it is deductible at 2.5% per year over 40 years. Again, we can refer to this ATO document called ATO ID 2003/600: https://www.ato.gov.au/law/view/document?src=rs&pit=99991231235958&arc=false&start=1&pageSize=10&total=29&num=2&docid=AID%2FAID2003600%2F00001&dc=false&stype=find&df=1346&df=1805&tm=phrase-basic-shed
In summary, if the shed cost more than $20,000, I guess it makes no difference whether the shed is a "Depreciating Asset" or otherwise "Capital Works" because it appears it will be deductible at 2.5% per year regardless of its classification.
If you believe the shed will not have an effective life of 40 years then you probably need to apply to the ATO for a private ruling to ensure it is classified correctly..
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