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Depreciation on euqipment acquired from buying a business as going concern

Discussion in 'Accounting, Tax & Legal' started by hahahaa, 6th Jan, 2012.

  1. hahahaa

    hahahaa Member

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    Can anybody advise how to depreciate the equipment acquired from a going concern business? I bought a business as going concern, the goodwill is $150000 and the equipment is $50000, should I depreciate the equipment at 15% or 30%?
    Thanks
     
  2. Terryw

    Terryw Well-Known Member

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    The equipemnt may be depreciating assets and you coul claim a portion of the value each year as a deduction depending on the effective life of the particular asset. See Div 40 of the ITAA 1997. also TR 2009/4 for some effective lifes of different assets.
     
  3. hahahaa

    hahahaa Member

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    Hi Terryw,

    Thanks for your reply, but if I want to use the simplified depreciation rule for SBE, should I treat the equipment as new one and depreciate it at 15% for the first year or allocate it to the opening pool balance and depreciate it at 30%.
    Thanks
     
  4. Terryw

    Terryw Well-Known Member

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    Did you look at the references I supplied?