Tax Time Question- Effective Life of Asset

funnysht on 03/09/2021 - 12:21
Last edited 03/09/2021 - 12:21

Quick question: bought a laptop for $480 in sept 2020- super cheap and well not great….and now don't use it (just chucked it out- not sold) in may 2021.

I used 100% for work to make it simple
Wondering if i got these questions correct:

Have you ceased to hold (e.g. sold, disposed or scrapped) or use the asset? *
YES

Termination value enter dollars and cents *
$0 (as i havent sold it)?

Balancing adjustment offset amount enter dollars and cents *
$0 (as i havent sold it)

Have you recalculated the effective life for this asset? *
Would i have to say yes given i used the laptop for <1 year?

This last question im not too sure- as the life of the laptop has been reduced to like 10 months-
Thanks- just this last step before submission :/

Financial Taxation

Comments

  • Poppin on 03/09/2021 - 12:24

    Not advice.

    It depends, based on my understanding:

    If you recalculate the effective life to 10 months, then the depreciation will be $480
    If you don't the the depreciation will be half or 2/3rds depending on the method (not sure of the exact numbers) then your claim will be 5/6th of that.

  • JimB on 03/09/2021 - 12:54

    Should be the full amount in 1 Financial Year, but there needs a good reason and evidence why you threw out a less than 1 year out laptop

  • KaTst3R on 03/09/2021 - 14:51

    Tax useful life for laptop is 2 years. So 3/4 is depreciation and 1&1/4 is asset write down assuming it is broken. It leads to the same outcome of full depreciation in Year 1.

    But you gonna have a hard time explaining why you threw out an asset if it was still under warranty and less than useful life.

    • funnysht on 03/09/2021 - 15:54

      Thanks. But what if I just used it only for work 10months?

      • KaTst3R on 03/09/2021 - 21:01

        I saw your other comment that you didnt throw it out but left it on bookshelf. That means your asset is not written down. So depreciate 10/24 * 480.

        • funnysht on 03/09/2021 - 22:09

          thanks- so if i just stop using it and left it on the shelf i should for "Have you recalculated the effective life for this asset? *" — place 'No" ?
          and other questions above leave as is?

  • ihbh on 03/09/2021 - 15:15

    just chucked it out- not sold

    Why didn't you try to donate it? E.g. Market place, Gum Tree?

    • funnysht on 03/09/2021 - 17:22

      i meant i didnt chuck it sorry more just left it on the bookshelf..hoarding ah

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