Q: How does the low-value pool affect items that are part of a set?

A: The low-value pool is an effective rule allowing an increased depreciation deduction available to most investment property owners. Any asset in a rental property which costs less than $1000 can be included in the low-value pool and written off at an accelerated rate of 18.75% in the first year of ownership and 37.5% each year thereafter. There is often confusion concerning assets which form part of a set when their total cost exceeds $1000. For example, if a house has six sets of blinds, the cost will be around $3000. The total cost does not appear to qualify for the extra depreciation available in the low-value pool, however these blinds will still depreciate at the higher rate as they qualify as individual assets. Dividing $3000 into six makes each blind worth around $500. Therefore the blinds can be included in the low-value pool.

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Q: How does the low-value pool affect items that are part of a set?

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