Step through the criteria, and calculate the depreciation deductions, for each of the different methods of tax depreciation for small businesses under the capital allowance regime (even if that method is not available). Do NOT address pooling at all. Show all workings in your calculations, supported by explanations and legislative references. If you wish, it may assist to set out your calculations and workings in tabular format.
Jocelyn runs her own photography business and has done for the past 10 years. Her business income has remained relatively stable over the last 5 years, at around $1m.
On 20 May 2021 Jocelyn purchased a new digital camera for $4,400. Assume that the camera as having an effective life of 5 years according to the Commissioner's ruling.
On 1 September 2021, Jocelyn decided to upgrade her camera in order to produce the highest quality brochures, photos and documents for her clients. She paid $12,000 for the latest high-end digital camera. She traded in her old camera for $2,400 when she purchased her new camera. Assume the effective life of the new camera is 5 years.
While the cameras are for Jocelyn's use in her business, she has sometimes used them to take family photos and photos of her hiking trips due to the superior quality of the cameras. Jocelyn’s personal use of the cameras amounts to 10%.
Jocelyn is registered for GST (so you must account for this).
Step through the criteria, and calculate the
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