- An asset is something the business owns.
- A fixed asset is an asset you generally expect to use in your business for more than a year.
- You cannot deduct the full cost of purchasing these assets from your taxable income in the year of purchase. You can, however, claim depreciation.
- You need to prove the purchase and sale of any fixed asset with a tax invoice.
- If you start using a private asset for business purposes or if you keep business assets for private use after you stop operating, you have to confirm that the asset is valued at market value. This may mean getting an independent valuation.
- Using a fixed asset register is a good way to keep track of these assets.
- Your fixed asset register may look like this.
Fixed asset register
|Description||Serial Number||Cost of values||Date Purchased||Remarks|
The cost or value excludes GST if you are registered for GST.
Date published: 14 Oct 2004