Changes to Simpler Depreciation Rules

Simpler depreciation rules apply if you run a business that turns over less than two million / year then you are in for some good news regarding asset write-offs. The instant asset write-off has increased from $1,000 to $6,500 in the 2012-13 and subsequent years. Also the long life small business pool and the general small business pool have been consolidated into one. If you have no idea what I am talking about there not to worry just … [Read more...]

End of Year Depreciation

Depreciation refers to two very different but related concepts: the decrease in value of assets (fair value depreciation), and the allocation of the cost of assets to periods in which the assets are used (depreciation with the matching principle). The former affects values of businesses and entities. The latter affects net income. Generally the cost is allocated, as depreciation expense, among the periods in which the asset is expected … [Read more...]