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Hi,
We have recently purchased two vehicles each under $30,000 with cash (no loan/finance).
How do I process these asset purchases so that they can be written off immediately under the Instant Asset Write Off scheme?
Thanks
Start as normal. The expenditure of money equates to an asset on the books of equal amount. Despite being "inatant" you normally would record depreciation of assets once at fiscal year end. It entails a journal entry debiting depreciation expense and crediting the asset. Once you do that the asset value on books is zero. The following flow is based on US and in your country depreciation might be referred to as something different but concept is same.
Consult with your tax accountant about recording the above journal entry today or waiting until year end. Sometimes it is best to wait. What the taxman giveth, the taxman can easily and without notice, take away.
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