Yanni Owns a Medium Size Business That Is Not a Small

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The Answer is The maximum deduction for depreciation in 2019/20 will be calculated by the diminishing value method: s 40-72 ITAA97. For eligible taxpayer businesses (those with an aggregated turnover less than $500 million), new plant and equipment purchased after 11 March 2020 is eligible for an accelerated rate of depreciation equal to 50 per cent of the cost of an asset. Therefore, Yanni will be able to claim, as an immediate deduction, 50% x $200,000 = $100,000. He can then also claim depreciation on the balance of the asset's cost. The depreciation deduction will then be = $100,000 x 200%/10 x 61/366 = $3,333.

Yanni Owns a Medium Size Business That Is Not a Small

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Yanni Owns a Medium Size Business That Is Not a Small

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