You Guide to Capital Gains & Depreciation Schedule Examples

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 [...]

Capital gain on depreciating asset Larry purchased a truck in August 2006 for $10,000 and sold it in June 2008 for $8,000. He used the truck 10% of the time for private purposes. The decline in value of the truck under the UCA system up to the date of sale was $2,000. Therefore, the sum [...]

Capital gains or capital losses only arise from the disposal (ie. sale) of a depreciating asset. A gain or loss will only arise to the extent that you have used the asset for a non-taxable purpose (eg. Private purposes). Capital gains and losses can be calculated using the Guide to Depreciable Assets from the Australian [...]