FORMATION/SET UP COSTS
Super: doesn’t depreciate
Trust: intangible asset
DR Formation cost (expense)
CR Accumulated amortisation
A SBE is entitled to an immediate deduction for certain start-up expenses under s40-880(2A)
ASSET FINANCE
Equipment Loan (chattel mortgage): may suit businesses that want to own a car or equipment as soon as possible and potentially claim an instant tax deduction before 30 June 2018.
Hire Purchase (HP): if you want immediate use of a car or equipment while paying it off over a fixed term.
DR buy Asset
CR borrow Fund/Loan
DR pay Interest / HP charges/ term charges
CR Cash
FIXED ASSETS immediate write-off asset threshold
Full Schedule of Assets - Detailed Calculating the written down value of an asset at a particular date - apportioning (using diminishing value) Apportion: Closing bal x (Days held/365) = Dep'n exp Closing bal - Depn exp = $ Example: Value as at 9/8/18 Opening Adj. Value: 3,646.00 Eff Life: 18.75 YTD Decline: 684 (= 3,646.00 x18.75) Closing adj. value 2,962.00 (= 3,640 - 684) So, 40 days after 30/6/18 Therefore, 2,962 X (40/365) = $ 324.64 YTD decline And, 2,962 - 324/64 = $ 2,607.36 Closing value
Comments