Hi
I am trying to get my head around the new tax bonus deduction of 50% and double claiming of Laptops.
Can someone please help me!
eg. I buy a $1000 laptop.
I am reimbursed by my employer company
Company claims GST back of $100
Company claims the laptop
I claim the depreciation on the laptopCan the company also claim another 50% deduction under the new tax bonus?
If so I might even make money by buying a laptop!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
I think the 2008 Federal Budget eliminated your ability tio claim depreciation when your employer has reimbursed you.
I seem to remember the pant & equipment had to have a minimum value in otrder to get teh investment allowance. I tuink the 50% is based on the company turnover too.
hi CRJ
I think I recall hearing something about that now – will look into it
For the 50% bonus the asset needs to be over $1,000 for small businesses and to be classed as a small business the turn over needs to be less than $2mil.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw wrote:hi CRJI think I recall hearing something about that now – will look into it
For the 50% bonus the asset needs to be over $1,000 for small businesses and to be classed as a small business the turn over needs to be less than $2mil.
That "double dipping" thing was a thing of the past, Terry. It was sanctioned by TD93/145 for years but someone in Treasury wised up. Damn.
In relation to the investment allowance, I think the employer company can claim the 50% additional deduction, provided it was the employer who incurred the expenditure (eg, the invoice should be in the employer's name) and the employer is a small business entity.
If the employer merely reimburses an employee who incurred the expenditure in the first instance, I am not entirely convinced that the allowance will apply because the reimbursement may have recharacterised the nature of the outgoing.
Eddie
[email protected]Thanks Eddie.
Still, it is not a bad deal as you get to claim the asset or depreciate it and then can claim another 50% in year 1.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw, the allowance is only available for new assets over $1,000 (after GST). The tax break is provided to the legal owner of the asset. Please feel free email us for any further information or help re the tax break on [email protected]
In an effort to jumpstart the economy, the government is offering a 50% tax bonus for small businesses. This will help businesses to invest in new equipment and create new jobs. In addition, the government is also offering laptops that are called Notebook LCD to businesses that can show they need them for their employees. This is a great way to get businesses up and running again after the pandemic.
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