Private ruling: Decline in value of a desk
Published: November 2014
Ruling period: Year ended 30 June 2015
Date scheme commenced: 1 July 2014

Ruling: Q1: Are you entitled to a deduction for the decline in value of a desk? | A1: Yes.


Relevant legislative provisions: Income Tax Assessment Act 1997 Division 40

Reasons for decision: Summary: Division 40 of the Income Tax Assessment Act 1997 allows a deduction equal to the amount of the decline in value for an income year of a depreciating asset held at any time during the year. This deduction is referred to as a capital allowance deduction, is only available to the extent that the depreciating asset is used for a taxable purpose, and is generally claimed over a number of years, depending on the effective life of the asset. The effective life starts when you begin to use the asset or have it installed ready for use. Therefore, as the desk is used for income producing purposes, you may claim a deduction for the decline in value.

Relevant facts: You are employed as a manager. | You have purchased a desk for work. | The cost of the desk is more than $300.