$5,000 accelerated depreciation for small business
Posted 10th August, 2012 in 2012
$5,000 Accelerated Depreciation for Small Business
Your small business may qualify for the Federal Government’s accelerated tax deduction of up to $5,000 for vehicle purchases.
For vehicles acquired from the 2012- 2013 income year small businesses can claim up to $5,000 as an immediate deduction for motor vehicles.
The remainder of the motor vehicle value is pooled in the general small business pool (depreciated at 15% in the first year and then 30%).
This reform is closely related to another previously announced measure that allows small businesses to immediately write-off any new business
asset worth less than $6,500 from the 2012-13 income year onwards.
The eligibility requirements are.
– The immediate deduction can be claimed on motor vehicles purchased from 1 July 2012.
– The business must be a small business entity. Generally, a small business entity is one with an aggregated annual turnover of less than $2 million dollars.
– Eligible vehicles can be new or used road vehicles (e.g. cars, trucks, utilities, motorcycles).
– “Motor vehicles” does not include road vehicles where its main function is not related to public road use or if the vehicle’s ability to travel on public roads is secondary to its main function (e.g. tractors, trailers, road graders).
As always, talk with your tax advisor to see if your eligible for the full benefits.