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  • #977892
    Captain Scarlet
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    I recently bought a laptop and want to know how much I can depreciate it. I understand that I can only claim it for the time I purchased it to the tax year end, but I’m not sure how to calculate it. Is there a webpage I can go to work it out?

    Also, I have bought portable hard drives and a mouse and a couple of other hardware bits. Are they classed as capital purchases and need to be depreciated or are they classed as non-capital and I can deduct them from my tax?

    Thanks in advance.

    #1102814
    @HeatherSmithAU
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    Typically a capital item over $1000 will be allocated to assets, and depreciated.

    Typically a computer is depreciated with a 3 year life span.

    However you need to check with a tax accountant for your own specific circumstances,

    Cheers

    #1102885
    @HeatherSmithAU
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    Typically a capital item over $1000 will be allocated to assets, and depreciated.

    Typically a computer is depreciated with a 3 year life span.

    However you need to check with a tax accountant for your own specific circumstances,

    Cheers

    #1102816
    happygirl
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    Captain Scarlet, post: 114502 wrote:
    I recently bought a laptop and want to know how much I can depreciate it. I understand that I can only claim it for the time I purchased it to the tax year end, but I’m not sure how to calculate it. Is there a webpage I can go to work it out?

    Also, I have bought portable hard drives and a mouse and a couple of other hardware bits. Are they classed as capital purchases and need to be depreciated or are they classed as non-capital and I can deduct them from my tax?

    Thanks in advance.

    Not sure if this is applicable to yourself, but in respect of my situation I was told to look at the following document on the ATO. http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Depreciating_assets.XR4&go=ok

    http://www.ato.gov.au/content/downloads/IND00270218n19960611.pdf

    In my circumstances, I was told to write of the asset of 3 years, and could either use the dimiishing or prime method of calculation. Once I had this figure and I used diminishing as it worked in my favour, I also had to prorate it based on the % of hours I used for work related purposes vs private use.

    I was given so much advise of the forums from accountants on this board (I am not one – simply a little sole trader). I also called the small business tax line at the ATO who provided me with all the answers I needed.

    I completed my tax return this year by myself and all was good. I also prorated the software, mouse etc that I purchased and a % of the internet as I work from home. I got verification that all was good from the ATO and was not locked up after the ATO assessed me.

    Let me know how you go. Curious if all the wonderful people here increased my knowledge and also don’t forget the ATO is a great place for info. I always found the people helpful and new their stuff. They told me about deductions that I was not aware of!!

    #1102888
    happygirl
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    • Total posts: 111
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    Captain Scarlet, post: 114502 wrote:
    I recently bought a laptop and want to know how much I can depreciate it. I understand that I can only claim it for the time I purchased it to the tax year end, but I’m not sure how to calculate it. Is there a webpage I can go to work it out?

    Also, I have bought portable hard drives and a mouse and a couple of other hardware bits. Are they classed as capital purchases and need to be depreciated or are they classed as non-capital and I can deduct them from my tax?

    Thanks in advance.

    Not sure if this is applicable to yourself, but in respect of my situation I was told to look at the following document on the ATO. http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Depreciating_assets.XR4&go=ok

    http://www.ato.gov.au/content/downloads/IND00270218n19960611.pdf

    In my circumstances, I was told to write of the asset of 3 years, and could either use the dimiishing or prime method of calculation. Once I had this figure and I used diminishing as it worked in my favour, I also had to prorate it based on the % of hours I used for work related purposes vs private use.

    I was given so much advise of the forums from accountants on this board (I am not one – simply a little sole trader). I also called the small business tax line at the ATO who provided me with all the answers I needed.

    I completed my tax return this year by myself and all was good. I also prorated the software, mouse etc that I purchased and a % of the internet as I work from home. I got verification that all was good from the ATO and was not locked up after the ATO assessed me.

    Let me know how you go. Curious if all the wonderful people here increased my knowledge and also don’t forget the ATO is a great place for info. I always found the people helpful and new their stuff. They told me about deductions that I was not aware of!!

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