Can items which have depreciated below $500 be written off?
Question from Dean Clisby updated on 15th November 2006:
Our expert responded:
Wouldn't that be nice? Unfortunately the answer is no, you cannot just write them off when the book value of the depreciated asset goes below $500. Of course, if for example, you no longer use the asset or it has broken and won't be repaired, make sure you keep a record or it, throw the asset away, and then you can write it off, regardless of what its value is.
Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.