This video tackles about temporary full expensing with respect to Small Business Entities (Less than $10,000,000 turnover) using a company structure.
Temporary full expensing allows eligible businesses to deduct the full cost of eligible depreciating assets of any value, in the year they are first held, first used or installed ready for use for a taxable purpose.
CTR - Temporary Full Expensing and CTR Depreciation: Capital Allowances > Temporary Full Expensing
ITR - Temporary Full Expensing for Sole Trader (Individual Tax Return)
You have 2 options for temporary full expensing:
Note: You may be eligible for temporary full expensing if you are one of the following:
- a business with an aggregated turnover of less than $5 billion.
- a corporate tax entity that meets the alternative income test.
A. Using LodgeiT "Tools"
Record the asset group as "Temporary Full Expensing" via Tools > Depreciation
Make sure to select "Temporary Full Expensing" as Type
B. Record directly via tax form. Learn more
FAQ:
TRT
Q: It is not flowing through to adjust taxable income on the reconciliation page
A: According to ATO temporary full expensing should only be recorded in “Add: Expense reconciliation adjustments (Non deductible expenses)” and not in “Less: Expense reconciliation adjustments (Deductible expenses)” - https://www.ato.gov.au/Forms/Trust-tax-return-instructions-2022/?page=6#Expensereconciliationadjustments
Then, you should fill “Business related depreciation expenses” with the same amount because the difference is used in Add: Expense reconciliation adjustments (Non deductible expenses).
