Depriciation and Fringe Benifits

[Anthonyj]

Hi All,

Just wondering if anyone knows if having a Fringe benefit as part of your salary, effects your depreciation deductions for an IP.

I was thinking that if you receive a tax break via fringe benefits, then you may limit/reduce the amounts you can claim through an IP depreciation schedule.

If it is still worth getting a depreciation schedule, I will lock one in before Sunday/EOFY.

Any input is appreciated.

Cheers

 

[Rob G.]

This is perhaps confusing two concepts.

Firstly, depreciation itself is not an expense so I presume that you are referring to an expense payment that reimburses a capital expense.

The 'otherwise deductible rule' does not apply unless there would have been an entitlement to a once-off deduction - not depreciation. So full FBT would normally apply unless there is an exemption or other concession.

Not a nice area to rush into ... you need to get detailed professional advice first.

Cheers,

Rob

 

[Anthonyj]

Thanks Rob.

I will wait till next financial year to do this. I will see my accountant and run it by him.

I may have confused myself and the question by not stating things correctly.

"Does receiving fringe benefits effect claiming depreciation?" may have been a better way to ask.