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Re: Musical Instrument as Tax Deduction

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I am a secondary school teacher and currently teach maths/music and being left handed it is difficult to get the school/budget to justify purchasing a guitar for me for teaching purposes - so I have been taking in my personal guitar which is unfortunately copping a beating. I was considering making a purchase of a guitar purely to keep at school to use to teach but the one I am looking at is around $1000 - over the $300 cap for deductions. As a result, with such a purchase would this be a deduction for depreciation over its useful life or would the entire asset be claimable? Any assistance is greatly appreciated with this matter. 

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ATO Certified Response

Devotee Registered Tax Practitioner

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Hi @jmorton6 - you can depreciate it over it's useful life.

Currently the ATO's effective life for stringed instruments is 10 years - see Income Tax - Effective life of depreciating assets

 

So you can depreciate it at 10% per year under the Prime Cost depreciation method, or 20% per year under the Diminishing Value method.

The Diminishing Value method will depreciate it faster.

 

Unfortunately you cannot claim the instant asset write-off for capital expediture up to $20,000 that's available to small business enterprises (SBEs) - if you are not a SBE.  

 

To be an SBE, you must be carrying-on a business, with an ABN and a business bank account.

 

Kym Y

Darwin

 

 

1 REPLY 1
Highlighted

Most helpful response

ATO Certified Response

Devotee Registered Tax Practitioner

Replies 0

Hi @jmorton6 - you can depreciate it over it's useful life.

Currently the ATO's effective life for stringed instruments is 10 years - see Income Tax - Effective life of depreciating assets

 

So you can depreciate it at 10% per year under the Prime Cost depreciation method, or 20% per year under the Diminishing Value method.

The Diminishing Value method will depreciate it faster.

 

Unfortunately you cannot claim the instant asset write-off for capital expediture up to $20,000 that's available to small business enterprises (SBEs) - if you are not a SBE.  

 

To be an SBE, you must be carrying-on a business, with an ABN and a business bank account.

 

Kym Y

Darwin