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instant write off for items under $1000

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Newbie

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i have a few expenses, all under $1000 each ( about $3000 in total)

i was under the impression anything under 1000 can be an instant write off. but my accountant is putting it in as capitalised.

Is there anything i can read, or can someon give me a answer on this please.

Cany anything under $1000, be written off instantly in the year. if used right away. or is it only certain things, like computer expenses?

Also how many of these can you do? if there is a limit.

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ATO Certified Response

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Hi @PixelPaul

 

Thanks for getting in touch!

 

Eligible small businesses can claim an instant asset right off for assets you buys that cost less than $20,000. The business portion can be written off in your tax return for the relevant income year.

 

You are eligible to use simplified depreciation rules and claim an immediate deduction for the business portion of each asset (new or second hand) costing less than $20,000 if:

  • you had a turnover less than $10 million (increased from $2 million on 1 July 2016), and
  • the asset was first used or installed ready for use in the income year you are claiming it in.

If you have further questions you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator. 

 

Thanks, JodieH. 

4 REPLIES 4
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Most helpful response

ATO Certified Response

Community Support

Replies 3

Hi @PixelPaul

 

Thanks for getting in touch!

 

Eligible small businesses can claim an instant asset right off for assets you buys that cost less than $20,000. The business portion can be written off in your tax return for the relevant income year.

 

You are eligible to use simplified depreciation rules and claim an immediate deduction for the business portion of each asset (new or second hand) costing less than $20,000 if:

  • you had a turnover less than $10 million (increased from $2 million on 1 July 2016), and
  • the asset was first used or installed ready for use in the income year you are claiming it in.

If you have further questions you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator. 

 

Thanks, JodieH. 

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Newbie

Replies 2

thanks,

that is what i wanted to know.

so i can claim multiple instant write offs under 20,000$  so i could claim one that is 15,000 and another that is 18,000 in the one year?

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Devotee

Replies 1

Hi @ PixelPaul,

Yep, you can use the instant asset write off rules to depreciate multiple assets, provided each asset cost less than $20,000 to purchase/install/use and you:

  • use the rules to work out deductions for all your depreciating assets except those specifically excluded
  • apply the entire set of rules, not just individual elements (such as the instant asset write-off)
  • only claim a deduction for the portion of the asset used for business or other taxable purposes and not for the portion for private use.

We encourage you to check out our info on the instant asset write off rules - you can find examples and calculations in this guide that will help you work out how to claim.

 

Thanks!

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Devotee Registered Tax Practitioner

Replies 0

@PixelPaul @AmandaE @JodieH

 

PixelPaul,

 

Are you in business?

 

If you are an employee, the tax treatment by your Tax Accountant would be correct.

 

I recall that there is a $300 limit for those not in business.

 

Duncan Smith