Small business entities using the simplified depreciation rules – do not complete this item.
Did you start to deduct the decline in value of any intangible depreciating assets?
No |
Go to item P16 Other depreciating assets first deducted. |
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Yes |
Read on. |
You need to know
The following intangible assets are regarded as depreciating assets (as long as they are not trading stock):
- certain items of intellectual property
- computer software (or a right to use computer software) that you acquire, develop or have someone else develop for your use for the purposes for which it is designed (in-house software)
- mining, quarrying or prospecting rights and information
- spectrum licences, and
- datacasting transmitter licences.
A depreciating asset that you hold starts to decline in value from the time you use it or install it ready for use for any purpose, including a private purpose. However, you can only claim a deduction for the decline in value to the extent that you use the asset for a taxable purpose, such as for producing assessable income.
At item P15 you need to show the cost of all intangible depreciating assets for which you are claiming a business deduction for decline in value for the first time. If you have allocated any intangible depreciating assets with a cost of less than $1,000 to a low-value pool for the income year, you also need to include the cost of those assets at item P15. Do not reduce the cost for estimated non-taxable use.
Expenditure on in-house software that you allocated to a software development pool is not shown at item P15.
For more information on decline in value, cost, low-value pools, in-house software and software development pools, see the Guide to depreciating assets 2008.
Completing this item
Step 1 Add up the costs.
Step 2 Write the total at I item P15 on page 4 of your schedule. Do not show cents.
Is the amount at I greater than $75,000?
No |
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Yes |
You need to complete and attach a Capital allowances schedule 2008. For more information, see the Capital allowances schedule instructions 2008. |