At the height of the GFC, the Govt provided a bonus of 50% depreciation in addition to the normal depreciation of assets acquired by small business (less than $2m turnover).
I have a trust with ABN and it has an IP with more to be acquired in future following a strategy of revalue/refinance Buy-and-hold. I checked with the tax office and they advised that the trust is eligible for the 50% depreciation bonus if the IP is not a passive investment. Apparently, under self-assessment the officer advised that the 50% applies if the business is managed actively and not passively. I reckon that the IP is an active business seeing that I self-manage (no PM), maintain/repair the IP and do all the back room work (design drawings and application for modifications) for it to enhance it for revalue/refinance.
Should I use the 50 % accelerated depreciation for a new car acquired in the trust? Is there anyone with a similar situation of having bought a new car for operation and hence tax depreciation in the trust? The normal operating life for a car is 6.5 years (15.4% per annum) and if the bonus applies, becomes 65.4% depreciation in the first year.
I have a trust with ABN and it has an IP with more to be acquired in future following a strategy of revalue/refinance Buy-and-hold. I checked with the tax office and they advised that the trust is eligible for the 50% depreciation bonus if the IP is not a passive investment. Apparently, under self-assessment the officer advised that the 50% applies if the business is managed actively and not passively. I reckon that the IP is an active business seeing that I self-manage (no PM), maintain/repair the IP and do all the back room work (design drawings and application for modifications) for it to enhance it for revalue/refinance.
Should I use the 50 % accelerated depreciation for a new car acquired in the trust? Is there anyone with a similar situation of having bought a new car for operation and hence tax depreciation in the trust? The normal operating life for a car is 6.5 years (15.4% per annum) and if the bonus applies, becomes 65.4% depreciation in the first year.
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