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How do you treat a stolen asset in your tax return?

Newbie

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My husband is a sole trader plumber. He purchased a work vehicle in October 2019 for $9k (100% business usage). He also bought several new tools this year and he was planning to claim the instant asset write off for both car and tools this FY. Is that correct, can it be done? I guess durable tools are considered assets and consumables are expenses, am I right? 

 

However, the vehicle got stolen on 30/06/19 with all the tools inside. Unfortunately, neither the vehicle or the tools were insured.

How do I treat the loss of these assets? Can I still claim the instant asset write off?

 

Thank you in advance!

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Most helpful response

Community Moderator

Replies 0

Hi @Lucia83

 

Thanks for your post.

 

Your husband can claim an immediate deduction for the business portion of the asset costs. From what you have mentioned, the business portion was 100%. The instant asset write-off can't be used for assets that are excluded from the simplified depreciation rules.

 

For more information about the instant asset write-off for eligible businesses, have a look at our website.

 

The fact that the assets in question have been stolen doesn't prevent your husband from being able to claim an immediate deduction. Where an insured asset is stolen and there is an insurance payout, the payout amount is assessable income. This obviously doesn't apply to your husband as the assets weren't insured.

 

As with any business deductions that are claimed, your husband doesn't need to provide evidence with his tax return but should keep records just in case we ask. Our website provides more information about record keeping for business that we suggest you check out.

 

Hope this helps.

 

Thanks, Chris

1 REPLY 1

Most helpful response

Community Moderator

Replies 0

Hi @Lucia83

 

Thanks for your post.

 

Your husband can claim an immediate deduction for the business portion of the asset costs. From what you have mentioned, the business portion was 100%. The instant asset write-off can't be used for assets that are excluded from the simplified depreciation rules.

 

For more information about the instant asset write-off for eligible businesses, have a look at our website.

 

The fact that the assets in question have been stolen doesn't prevent your husband from being able to claim an immediate deduction. Where an insured asset is stolen and there is an insurance payout, the payout amount is assessable income. This obviously doesn't apply to your husband as the assets weren't insured.

 

As with any business deductions that are claimed, your husband doesn't need to provide evidence with his tax return but should keep records just in case we ask. Our website provides more information about record keeping for business that we suggest you check out.

 

Hope this helps.

 

Thanks, Chris