Stupid Question around Tax Depreciation of Mobile Phone

julesio on 01/01/2018 - 10:54
Last edited 01/01/2018 - 13:16 by 1 other user

Hey guys, this may be a stupid question but I thought I would ask. I have been sick since the beginning of the financial year, I have earnt around $2100 freelancing as a designer under my own ABN and just started a new job in December working at a large tech company (currently fixed term but converting to permanent in a weeks) where my gross income will be roughly $70k for the financial year (assuming I stay),

Considering the purchase of the device being around $1800, would I be best to claim depreciation? I am just making this decision as my iPhone 6 is literally freezing three times per day but don’t want to jump in only to learn that I’ll get $300 back come July. Again, I’m not that educated around deductions so any advice would be greatly appreciated.

Yes, I do realise how stupid and immature this question might sound, The ATO website just confused me.

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  [Deactivated] on 01/01/2018 - 10:58

  Considering the purchase of the device being around $1800

  IPhone X?

  • 

    julesio on 01/01/2018 - 11:03

    Yes. I am stuck within the Apple lifecycle for work - iPad, MacBook Pro. Played with Android a few years ago and it just caused a whole lot of friction .

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  whooah1979 on 01/01/2018 - 10:58

  +1

  Considering the purchase of the device being around $1800

  $1800 instant write-off.

  https://www.ato.gov.au/Newsroom/smallbusiness/Lodging-and-paying/Get-your-$20,000-instant-asset-write-off/

  https://www.ato.gov.au/business/depreciation-and-capital-exp…

  • 

    julesio on 01/01/2018 - 11:05

    That is assuming small business declaration which has only generated 2k? I can only prove maybe 20% used for my job .

    • 

      whooah1979 on 01/01/2018 - 11:10

      +1

      That is assuming small business declaration which has only generated 2k?

      it's an asset regardless of your turnover.

      • 

        julesio on 01/01/2018 - 11:12

        Worth confirming with a tax accountant?

    • 

      whooah1979 on 01/01/2018 - 11:13

      +2

      I can only prove maybe 20% used for my job .

      you still have an abn and are freelancing. the ip6 is your private phone while the new phone is used to contact clients.

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  aarn on 01/01/2018 - 12:16

  -1

  whooah1979, thanks for putting this info out. $20k instant write-off, my income for 2017/18 (casual vet, with ABN), including Centrelink benefit when not working, gonna be ~ 20k so my tax bill now heading towards $0. Cheers

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  Sage on 01/01/2018 - 12:19

  70k? Wow you're loaded. Get a tax agent, you can afford it.

  • 

    julesio on 01/01/2018 - 13:18

    That’s just for the rest of the financial year starting from December. Tax agents currently on holiday as I debate my Sunday shopping.

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  foxmulder on 01/01/2018 - 12:24

  When you buy the iPhone?

  • 

    julesio on 01/01/2018 - 13:17

    I haven’t yet. Considering whether it is the best move given I’m trying to save as much as possible right now and want to gauge what I’m really spending through a tax lens.

    • 

      foxmulder on 01/01/2018 - 14:39

      Assuming after that new job you still continue to earn income via your freelance job you should be able to claim expense on the aht new iPhone. But you say 20 pwecent only for work this that 20,% you can expense.

      • 

        julesio on 01/01/2018 - 20:34

        So it looks like I’m going down the depreciation road…