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
You can calculate the depreciation of certain low-cost and low-value assets by allocating them to a low-value pool and depreciating them at a set annual rate.
A low-cost asset is one that costs less than $1,000 after deducting any GST credits you're entitled to claim.
A low-value asset is an asset that has depreciated over one or more years and now has a written-down value of less than $1,000, but only if you've previously worked out deductions for it using the diminishing value method.
Client has an existing "Motor Vehicle" as an "Asset" and he wants to write off the remaining balance on the current year. Click here to learn more from ATO
Client has an existing "Motor Vehicle" as an "Asset" and he wants to write off the remaining balance on the current year.
Step 1: Create a new “Asset Group” with “Type – Low Value Pool”
Step 2: Navigate to existing “Group Asset” Motor Vehicle, then, open each asset and edit -
Step 3: Scroll down to “Move to Pool” select from the dropdown and choose “Low Value Pool”.
Make sure that “Pooled Date” is same as the opening date - “depreciation date” from “Settings > Depreciation”
i.e. for 2020 form, “Depreciation date/opening date” should be set as 01 July 2019.