Depreciation Flashcards
1
Q
What is depreciable property?
A
Property that can be reasonably expected to decline in value while used for deriving income or carrying on a business
2
Q
Does the asset actually need to be used?
A
No, availability for use will suffice
3
Q
Low value write off method
A
If cost < $500, claim depreciation in year aquired
4
Q
Pool Method
A
Pool assets with the same depreciation rate and depreciate as 1 asset
5
Q
What does disposal include
A
Sale
Change in use (Business to private)
Theft
Suffered irreplaceable damage
6
Q
Hoe do we depreciate property in the year of disposal?
A
We don’t
7
Q
Loss on disposal
A
= BV - Sale Price (Deduction)
8
Q
Depreciation recovery income
A
Disposal < cost
Income = Disposal - BV
Dispoal > Cist
Income = Cost - BV
**Assessable income
