Assets costing less than $5,000.00

Wellington Accountant - Depreciation Specialists

The limit for writing off assets of $5000 applies for only 12 months being the 17/3/20 to 16/3/21 Inclusive. There could be
an issue some time in the future, if you are using your depreciation schedule as your plant register. A client may want to
know what happened to an asset not showing on the depreciation schedule.
Instead of writing off the cost as an expense, you could capitalise it and apply 100% depreciation for 12 months, thus
claiming the whole cost but leaving a trail. If the asset is ever sold any amount received is taxable.
There could also be an issue over what is the purchase date. The general rule is the date of purchase is the date on
which the buyer becomes legally liable to pay for the goods even if that date is sometime in the future.