Home – New Forums Money matters Double up tax break allowed?

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  • #967147
    CarolineHughes
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    Here is a midnight question for the tax expert? Can the additional 25% R&D tax concession be piggy backed on top of the 50% investment allowance for small business assets? Generally the 25% R&D tax break is calculated on whatever the Div 40 deduction is for the asset. Therefore if the 50% additional tax deduction for assets was applied through Division 40, does this mean if the asset is also an R&D asset, it can get an extra 25% tax deduction on top of that?
    Cheers
    Caroline

    #1023872
    James Millar
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    The 50% investment allowance / bonus is completely independent from the typical depreciation available under UCA regulations. The R&D concessions will apply in the usual way even if the 50% bonus has been claimed (when I say usual way I mean only if the underlying asset as eligible for inclusion in an R&D calculation).

    Just think of the 50% concession as a once in a lifetime bonus thats unrelated to standard tax law. Combine that with the recent $900 handout and we should be paying these measures back for years to come. Thanks KRudd – using his credit card now to make everyone feel good about life (and our kids can worry about payback.)

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1023873
    CarolineHughes
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    JamesMillar, post: 28380 wrote:
    The 50% investment allowance / bonus is completely independent from the typical depreciation available under UCA regulations. The R&D concessions will apply in the usual way even if the 50% bonus has been claimed (when I say usual way I mean only if the underlying asset as eligible for inclusion in an R&D calculation).

    Just think of the 50% concession as a once in a lifetime bonus thats unrelated to standard tax law. Combine that with the recent $900 handout and we should be paying these measures back for years to come. Thanks KRudd – using his credit card now to make everyone feel good about life (and our kids can worry about payback.)

    Great! – well for those that love the dosh now, headache later :)

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