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20K Tax Write Off

20K Tax Write Off

17 - Jun - 2016

30th June is fast approaching so take advantage of the $20,000 tax write off this financial year.

In many small businesses, cash flow is the number one concern. These tax breaks mean that a taxpayer can bring forward deductions where they wouldn’t otherwise have been able to do so.

Any small business with turnover of less than $2,000,000 can purchase depreciating assets up to the value of $20,000 and get an immediate tax deduction for them rather than having to write them down over the following years.

A depreciating asset is an asset used in a business that has a limited effective life and is expected to decline in value over the period you use it. Trailers are depreciating assets.

This tax concession is ideal for those businesses that were planning to purchase assets anyway or have a real business need to update equipment. If it can improve your bottom line (net profit) then look at taking advantage of the opportunity.

If you purchase before 30 June 2016, you will get 28.5 cents back in tax.

If used wisely, the instant deduction can be a real benefit to profitable small businesses that were planning on purchasing assets anyway. Be sure to talk to your accountant.

https://www.ato.gov.au/Media-centre/Media-releases/ATO-issues-advice-on-$20,000-immediate-asset-deductibility-for-small-business/