I've done a bit of a search on this and haven't found anything conclusive. Capitalist suggested in a recent post that even if an asset in the low value pool died, it stayed in, so that you would be writing it off as well as its replacement.
I've treated it differently and my accountant didn't raise an objection. I track the values of each asset individually and I wrote off the written down value of the scrapped asset, while starting the new asset at the prescribed rate.
I've also taken outdated items out of a rental property and applied them to my own use. In this case, I have reduced the value of the pool by the written down value but claimed NO deduction in the year of scrapping. I may have wasted a few dollars in depreciation allowance, but that doesn't really worry me.
Is this the correct treatment for low value pool assets?
I've treated it differently and my accountant didn't raise an objection. I track the values of each asset individually and I wrote off the written down value of the scrapped asset, while starting the new asset at the prescribed rate.
I've also taken outdated items out of a rental property and applied them to my own use. In this case, I have reduced the value of the pool by the written down value but claimed NO deduction in the year of scrapping. I may have wasted a few dollars in depreciation allowance, but that doesn't really worry me.
Is this the correct treatment for low value pool assets?