Small Business Entity having Accounting vs Tax Depreciation
1. Turn on tax depreciation at 4 squares and add the relevant depreciation values
2. Add the accounting depreciation expense at item 5
3. Go to the reconciliation section and manually create an addback for the accounting depreciation.
Note
- If the entity is reported under SBE method, accounting and tax depreciation must be equal.
- We've changed the logic for Small Business Entities. As per ATO rules if it's SBE than 6X must be equal to sum of 10 A+B and there is no need for reconciliation. Learn more from the ATO
