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Re: Instant asset write-off and business use

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Newbie

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Replies 3

Hi 

I am a sole trader and have a question about instant asset-write off and assessing business use. In particular, if I buy something in late June (already the 11th today!), do I still keep some kind of records for business use? For example a computer.

Is it just how much is used for business during 2019-2020 financial year? Does it matter how it gets used in 2020-2021 financial year or later?

Thanks!

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Best answer

Devotee

Replies 2

You need to be able to reasonably apportion the percentage used for business and the percentage used for personal. Generally you need to keep a log for 12 weeks to calculate the rate. You can then use that rate and your records to substantiate claims for the business portion of the purchase cost
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Best answer

Devotee

Replies 2

You need to be able to reasonably apportion the percentage used for business and the percentage used for personal. Generally you need to keep a log for 12 weeks to calculate the rate. You can then use that rate and your records to substantiate claims for the business portion of the purchase cost
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Newbie

Replies 1

Thanks. Although I'm wondering how you keep a 12 week record if you buy something in June, and there is only 1 or 2 weeks left before EOFY?

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Community Support

Replies 0

 

Hi @atoj1

 

Thanks @Biggiesmalls for sure reasonably apportion is key. If you haven't seen it already check out Business vs private and Instant asset write-off. Its context should prove helpful.

 

MarkATO