Question: Why am I seeing the warning "Questions regarding depreciating assets should be answered if Deduction for decline in value of depreciating assets is greater than zero"?
Answer: This is an ATO warning, not an error. It appears when Deduction for decline in value of depreciating assets (Item F) is greater than zero. If applicable, complete at least one of the additional depreciation questions in the Depreciation tab (e.g. first-year depreciating assets, effective life, temporary full expensing, or total adjustable values). If none of these questions apply to your circumstances, the warning can generally be ignored, and the return can still be lodged.
How to resolve:
- Go to Company Tax Return.
- Open the Depreciation tab.
- Since Deduction for decline in value (Item F) has a value (e.g. $3,2), complete at least one of the relevant depreciation questions below it, if applicable to your client.
For example, under Depreciating assets first deducted in this income year, complete one or more of the following if applicable:
- Other depreciating assets first deducted
- Intangible depreciating assets first deducted
- Temporary full expensing deductions
- Have you self-assessed the effective life of any assets?
- Are you opting out of temporary full expensing?
Or under For all depreciating assets, complete an applicable field such as:
- Total adjustable values at end of income year
- Did you recalculate the effective life of any assets this income year?
- Termination value of other depreciating assets
- Deductible or assessable balancing adjustments (where applicable)
If none of the questions apply
If the depreciation amount was generated correctly from the Depreciation Schedule and none of the additional questions are relevant, you can generally ignore this warning. It is an ATO validation warning only and does not prevent lodgement