Illustration: Selected “Yes” for Capital Allowances, but the Depreciation Expense line item does not appear in the tax return.
Explanation
If the trust is using the simplified depreciation rules, the tax-related depreciation is not automatically displayed as a separate depreciation expense line.
Instead, the depreciation amount should be reported under:
5K – Depreciation Expenses
What You Need to Do
Go to the Depreciation section of the return.
Enter the tax depreciation amount under 5K – Depreciation Expenses.
Ensure the figures entered reflect the tax depreciation, not just the accounting depreciation.
Important Note
At the moment, the form only shows accounting depreciation by default. Therefore, if the trust applies simplified depreciation rules, the tax depreciation must be manually entered in the Depreciation section (5K).
Summary
Ticking Capital Allowances = Yes does not automatically display a depreciation expense line.
If simplified depreciation rules apply, enter the amount in 5K – Depreciation Expenses within the Depreciation section.
Make sure the value entered represents tax depreciation, not only accounting depreciation.