Small Business Accelerated Depreciation

Accelerated Write off rules close on the 31st December 2013

Up until the 31st December 2013 a small business using the simplified depreciation rules can get an immediate write-off for depreciable assets up to $6,500 per asset. If you are looking at purchasing a vehicle worth more than $6,500 then you are able to write off the first $5,000 as an immediate deduction, then depreciate the balance.

This window closes on the 31st December 2013, meaning that any assets purchased from the 1st January 2014 will be subject to the “old” rules. That is, only assets up to $1,000 can be immediately written off. This  Motor vehicles purchased after 1st January 2014 will not receive any up front write-off.

If you are looking at purchasing office furniture or equipment which is valued at between $1,000 and $6,500 it may be wise to consider doing this before the new year. You may also consider purchasing your motor vehicles before the 31st December 2013 to get a greater tax benefit.