Hello, Having previously borrowed to buy an IP, I have some spare $$ left in my LOC and am thinking of buying a laptop. This will be wholly for the purpose of recording all my IP transactions, on-line banking, spreadsheets......everything that pertains to my IP finances......nothing else. Can anyone advise me if I can claim depreciation on this item, and if so, give me any further helpful advice? Thank you Jayar
I have for the last few years, so I hope it's allowed I also had mine supplied as part of salary package, effectively double deducation.
Yeah I think it can be depreciated over 3 years, but if you salary sacrifice it there is no fringe benefits tax pertaining to notebook purchases.
Hello, Thank you for your replies. I don't think salary sacrifice would be my go, but depreciating it sounds good. I may be over-simplifying this question, but if I depreciate it over 3 years, and it initially costs me ,say, $3000, what would be my nett cost after 3 years? Or would I be much worse off if I paid cash for the thing and forgot any depreciation claim? In other words, is it worth the trouble in the long run? Oh, and by the way, what is the difference between a laptop and a notebook, and can anyone give any personal recommendations or tips to a complete newcomer. Thanks in advance, Jayar
Not claiming a valid tax deducation is like saying you want to pay more tax Depreciation is about the easiest tax deduction you can get. On the 48% tax bracket, that's over a thousand dollars donated to Mr ATO if you don't claim. Even on the 10% tax that I pay, I claim still every cent I know/think/hope I'm allowed to claim.
Jayar. 1. Buy laptop for $3000. 2. At tax time, recognise that this laptop has a useful life of 3 years. So after 3 years, it's worth $0 because it's obsolete. 3. That being the case, if you use a straight line depreciation, it has cost you $1000 per year to have this laptop. 4. Therefore, minus $1000 from your taxable income per year for 3 years. 5. If you're earning good money, this translates to approx $485 saving per year. 6. If you're a low income earner, this translates to maybe a $200 saving per year. So all in all your laptop has cost you perhaps half price because you're getting more of your pre-tax income back. I'm not an accountant, go over the fine print yourself.
How about Flexirent the laptop instead of buying it? Is the monthly rate fully taxable? The problem is you do not own it at the end of the rent period.
Don't forget their high interest costs. If you have the cash, or LOC, then that is a lot cheaper source of money.
Flexirent can be up to 18% or even higher - do your research ... really not worth it in my opinion. May as well put it on your credit card and get the FF miles if you are prepared to pay that much interest.
Who wants to own a three year old computer? Can you have it updated through flexirent? I am looking at doing this next year as my wife will need a Laptop and a Palm thingy when she graduates from Uni. Very interested in the most efficient way of buying it - she will be able to salary sacrifice too. Thanks
I do not know if it can be updated on flexirent. Just asking if somebody knows how it works. I do not have a laptop and I am looking as well for a best way to buy it.
Troppo I think from memory the ability to upgrade by just handing back the old hardware and then just pay an "updated" payment for the new hardware was one of the touted features of flexirenting... But like Sim' I did the sums and it was too pricey to flexirent.
Gift from taxman Mr Darcy, I have recently purchased a PDA cum phone device as salary package. How do I make it double deduction? Thanks. Regards, PB
NickM might be able to offer some suggestions here ... not sure when he is back from holidays - sometime later this week I think.
How do I make it double deduction? Ask your accountant !!!!!! But for the record I... - purchased laptop from retailer - presented invoice to my employer who had (past tense now) a salary sacrifice scheme - they paid me by cheque to re-imburse for laptop purchase - they refunded the GST to me in after tax pay - they took the cost (about $3k) out of my pay over about 3 months - net effect I paid for it in pre tax dollars, no GST - depreciated in personal tax return as used 100% for investment (really) as I kept original invoice.
Laptop packaging Hi guys The "Roam" magazine a month or 2 ago has a good article on Laptop packaging and the sample figures for the benefit accruing to the employee were : Salary $60,000 Notebook cost : $3,000 Tax reduction due to packaging : $1,252 Depreciation (100 % business use) : $1,305 Nett cost of notebook $443 This was the nett cost over 3 years using the packaging method. An employee is allowed to be supplied a new notebook every year and its still FBT exempt. PDA's are also covered : http://law.ato.gov.au/atolaw/view.htm?find="2004/14"&docid=AID/AID200414/00001 Gotta love tax effective toys Cheers Carl
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