Private ruling: Decline in value - audio equipment
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Are you entitled to a deduction for your half share of the cost of audio equipment? | A1: Yes.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 40-25 | Income Tax Assessment Act 1997 Subsection 40-80(2)

Reasons for decision: Summary: Section 40-25 of the Income Tax Assessment Act 1997 allows a deduction for an amount equal to the decline in value of a depreciating asset to the extent that it is used to produce assessable income. You can deduct the asset's cost under subsection 40-80(2) if you use the asset predominantly for the purpose of producing assessable income and the cost does not exceed $300. Therefore, as the cost of the equipment was less than $300 and are used predominantly for income producing purposes, you may claim your half share of the cost of the equipment.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns. | Relevant facts: You and your spouse work from your home office as contractors for an overseas company. You each declare half of the income from the contract work. | You facilitate audio/video conferences in order to discuss work matters. | You purchased an item of audio equipment for between $200 and $300.