持分请教~！二手车 如何计算depreciation~？！

衣能净

请教~！二手车 如何计算depreciation~？！

car manufactured in Dec 2005
I bought it @ June 2007 for $15,500

So the depreciation shoud be 15,500 * 18.75% for June2007~June 2008
and 12593 * 18.85% for June2008~June 2009??

多谢各位~!~!~

另外请问 去年买了IPHONE在苹果店，不过RECEIPT上朋友的名字，可以用来抵税吗？

JohnnySu

pretty close. I would use 25%. If you have claimed the GST you also need to take that into account.

衣能净

taxbreak 发表于 2012-9-19 13:01
pretty close. I would use 25%. If you have claimed the GST you also need to take that into account.

thanks, but why 25%?
I though its has to be 18.25% and 8 effective years.

JohnnySu

衣能净 发表于 2012-9-19 13:53
thanks, but why 25%?
I though its has to be 18.25% and 8 effective years.

The rate for diminishing value method is 200% / effective life.   18.25% is the old formula.

衣能净

taxbreak 发表于 2012-9-19 15:55
The rate for diminishing value method is 200% / effective life.   18.25% is the formula.

so with second hand car, depreciation is only based on how much the owner paid for it and then caculated based its effective life?

It has nothing to do with how much the 1st owner bought it for , correct?

衣能净

另外请问 去年买了IPHONE在苹果店，不过RECEIPT上朋友的名字，可以用来抵税吗？

JohnnySu

衣能净 发表于 2012-9-19 16:32
so with second hand car, depreciation is only based on how much the owner paid for it and then cac ...

yes

JohnnySu

衣能净 发表于 2012-9-19 21:43
另外请问 去年买了IPHONE在苹果店，不过RECEIPT上朋友的名字，可以用来抵税吗？

...

no. You may be able to argue you bought it if you can show bank statement or credit card statement etc.

3IX37

Question, car was manufactured 2005, effective life 8 years, current year when u bought it is 2012, which is 7 years after when it was firstly ready for use. And why in heaven do we still want to depreciate it over for another 8 years?

Think about it :)

3IX37

and i believe you the 18.75% depreciation rate is correct, as this car was manufactured in 2005, and diminishing method changed in 10 may 2006 from 150% to 200%.  I believe the old depreciation method still should apply. Whether you can change depreciation rate as you are a second-hand buyer? I believe the answer is not. But if someone elso can provide a reference saying you can, i wouldn't be surprised.

Is this an assignment question? i have a feeling that this is not a real case. anyway, good luck.

JohnnySu

3IX37 发表于 2012-9-21 07:52
Question, car was manufactured 2005, effective life 8 years, current year when u bought it is 2012,  ...

That is the general rule. I believe 90% of the tax practitioners are doing the same thing. It is too costly to reassess the effective life and also there wont be any consistency if everyone does that.

JohnnySu

3IX37 发表于 2012-9-21 08:26
and i believe you the 18.75% depreciation rate is correct, as this car was manufactured in 2005, and ...

You are allowed to re assessment the effective life from year to year.

3IX37

taxbreak 发表于 2012-9-21 09:23
That is the general rule. I believe 90% of the tax practitioners are doing the same thing. It is t ...

maybe you are right about 90% practioner are doing this. but does this mean right?

and is it really a generaly rule? is the general rule for an asset to increase its life everytime when it changes hands? In this case, the effective life for the car is effectively 15 years, not 8 (since former holder held for 7 years and you say you are going to depreciate over another 8 years) , which implies everytime it changes hands, its life increases. it doesn't sound logical, dont you agree? :)

you are right, per s.40-95(6) if the holder can't readily find out the effective life for the asset, the commissioner's determination (8 years) must be used. But in this case, the manufactured date is readliy available on the rego, it is ready for use. and we are not changing or reassess it but contiuing to use it, which should not create any admin or reassess costs.

Dont you agree that this is working the best interest of your clients?

By the way, you are not wrong by using 8 years, you can even depreciate over 20 years if you like. ATO will not question you if you depreciate longer period, this only means you claim deduction less now. Being conservative is safe. This is just too safe for my liking :)

JohnnySu

3IX37 发表于 2012-9-21 09:54
maybe you are right about 90% practioner are doing this. but does this mean right?

and is it real ...

There is no right or wrong on this.

The tax law clearly allows self-assessment of effective life. So either you follow the commissioner's rate or self-assess you are working within the lines but by spending time on unnecessary calculation your clients are not getting the best value out of the accounting fee they are paying.

3IX37

i guess we established in your case, according to our elite, it is better value for the client, you,  to depreciate it over 8 years instead of 6, which the law clearly allows to and the info is readily available on your registration.  

Bravo. work done, money charged. client knows nothing and doesn't care anyway.

JohnnySu

3IX37 发表于 2012-9-21 10:41
i guess we established in your case, according to our elite, it is better value for the client, you, ...