Business depreciation?

[skippa1]

Yep i do realize they can make it look like you earn nothing... Unfortunately i do earn next to nothing so can't afford to pay for one....

Down 68k from last year and 95k from the year before..... but am enjoying life so much more.......The new missus ain't high maintenance like the ex wife was.
Don't no where the next set of tyres for the bike is coming from but hey...

You doing the cold kiwi?

[nallac]

You doing the cold kiwi?

Hell yeah, won't miss that. even if i have to sell a kid, i got 3 of em anyway..

Just need to get in a clutch cable from oz b4 then....

[imdying]

Get an accountant. They're deductable and save you more money than they cost by far.

[nallac]

Get an accountant. They're deductable and save you more money than they cost by far.

I would do but first you have to pay them... Bit hard when ya living on the smell of a rag, can't even afford the oil to make it a oily rag

[Ocean1]

Edit.....as above, if you sell an asset for more than the depreciated value, you owe that difference to IRD

And if the difference between book value and sale price is too much they'll hit you up for "use of money" charges.

[Mom]

Hey there, I'm trying to Do my books for the first time and can't get my head around Depreciation on my Assets.

For example they say Est Useful life on a Vehicle is 10 years, Depreciate @20% ,
what if the Vehicle is 23 years old? Do i still use it as 20% per year?. Cause it's already devalued by heaps?.


Also what about second hand equipment I bought during the year, do they still depreciate at the same % as per IRD265 guide?.

20 yo welder
8 yo Mower
5 yo Weadeater
ETC

Is there a $ cut off where you can class new(second hand equipment) as an expense rather than an asset?

The purchase price is the opening value of the asset. It depreciates in value as per the schedule each year until it has no value on the books. Ring me or visit, I can help with this shit. Anything under $500 can be expensed and does not need to be in your asset schedule. Just have an expense code called assets under $500 in your accounts.

[neels]

Ring IRD and ask them directly, will save you trying to guess and getting it wrong.

But general rule for purchases is under $500 expense it, over $500 capitalise it and depreciate. Repairs and maintenance depends on what you are doing, repairing existing is generally expensed, complete replacement with new is capitalised.

[JimO]

what did the dealer give you as a trade?

the dealer gave me 30k

[skippa1]

the dealer gave me 30k

Watch out for the audit then

[nallac]

The purchase price is the opening value of the asset. It depreciates in value as per the schedule each year until it has no value on the books. Ring me or visit, I can help with this shit. Anything under $500 can be expensed and does not need to be in your asset schedule. Just have an expense code called assets under $500 in your accounts.

Thanks Anne i will be in touch.