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  • #988195
    TehCamel
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    I’ve just been asked and I’m not sure. For BAS purposes,

    I understand that a purchase such as a total computer system would be classifed as a capital expense G10

    However – where individual components of a system are purchased and then used to build a full computer system, is that capital expense also?

    As example:

    Dell 6330 Laptop + Docking Station + 22′ Screen + 3 year warranty = $1600
    (this should be a Capital Expense – G10)

    Computer case + mainboard + processor + memory + disk = $850
    is it a capital expense (G10) or just an expense (G11?)

    i know that at the end of the year, our accountant will get it all out in the wash using the Simpler Depreciation rules and what not, but for BAS terms what would we do

    #1166113
    TehCamel
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    for follow up:

    because the intent is to build a full computer, rather han repairs or maintenance, then it’s a capital expense for GST purposes.

    #1166114
    bb1
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    TehCamel, post: 192290 wrote:
    for follow up:

    because the intent is to build a full computer, rather han repairs or maintenance, then it’s a capital expense for GST purposes.

    Ah yes but do you really have to say that it is being used to build a full computer, you could be replacing bits for maintenance on a piece meal basis.

    Not an accountant and happy for someone to yell at me, but if lodged as 1600 as it is over the 1K mark you need to depreciate over a few years. If each componet is under 1000 it is an immediate right off.

    #1166115
    TehCamel
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    bb1, post: 192291 wrote:
    Ah yes but do you really have to say that it is being used to build a full computer, you could be replacing bits for maintenance on a piece meal basis.

    Not an accountant and happy for someone to yell at me, but if lodged as 1600 as it is over the 1K mark you need to depreciate over a few years. If each componet is under 1000 it is an immediate right off.

    total components in this instance were under $1000 anyway.
    It’d be a hard sell to say i’m buying desktop components to undertake maintenance on what is otherwise a fleet of laptops.. :)

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