assets

Separate or aggregate CGT assets? The role of subdivision 108-D

  Under common law, when an accessory is annexed to a principal asset (such as land) the accessory becomes part of that principal asset. Theoretically, without an adjustment to the tax rules, if the principal asset of land had been acquired pre-CGT (before 20 September 1985), any building on that land or any addition to

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Changes to the depreciation of intangible assets

Business taxpayers will know that asset depreciation is an important aspect to their business’s tax health and longevity. Changes to depreciation of intangible assets  However the importance, and revenue generation role, of knowledge-based or intangible assets has become much more common in the modern business landscape. Innovative companies know that changes in the economy, including

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Profit-making “intention” of asset ownership can influence tax outcome

A profit that arises from the carrying out of a profit-making undertaking or plan (that is, one with a profit-making intention) will be assessable as statutory income under s15-15 of the ITAA97 where the proceeds of the profit-making undertaking or plan are not otherwise assessable as ordinary income under s6-5 ITAA97. Profit-making “intention” of asset

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Disposals of assets in small business pools

When a small business stops using a depreciating asset for any purpose or the asset has been disposed of, sold, lost, or destroyed, a “balancing adjustment event” has occurred. The taxable purpose proportion of the termination value must be deducted from the business’s depreciating asset pool balance at the end of the income year. The

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