Low Value Pool (LVP) is a method of depreciating plant items at a higher rate in order to maximise deductions.
A low-cost asset is a depreciating asset whose cost is less than $1,000 (after GST credits or adjustments) at the end of the income year in which you started to use it, or had it installed ready for use, for a taxable purpose. Learn more from the ATO
Note: Do not include a deduction for the decline in value of a low-value pool. You should include this at item D6 on your tax return. Learn more from the ATO
User can add Low value pool using these options:
Option 1 - Via LodgeiT Depreciation "Tools"
This video provides the guide on setting-up a low value pool from a rental property using the LodgeiT depreciation module.
Make sure to configure first the depreciation settings, learn more.
Set-up your asset via LodgeiT "Tools"
Select "Migrate Depreciation", it will automatically inject to the tax form.
The LVP for Financial Investment is under D6
Please be aware of the form notes under "Rental" for D6, ATO reference
- After the migration of the depreciation, LodgeiT no longer imports assets from the depreciation tool. Users must now edit their depreciation directly within the tax form. Therefore, users should continue editing their assets in the tax form.
- Certain assets cannot be migrated automatically. You can do it manually by creating an asset worksheet in the particular area of the tax return. Use the asset description field to search for the asset, then select it from the search results.
Option 2 - Direct Fill/Input
Directly add the asset into the tax form, using "Worksheet"
Please note that LVP will not show against the rental, it will only show against the LVP field. You can see this in the form instructions.
Related guide from the ATO - Working out the decline in value of depreciating assets in a low-value pool
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