Depreciating Assets

Have you sold or lost a depreciating asset? If you cease to hold or use a depreciating asset, a balancing adjustment event may occur.

A balancing adjustment is calculated by comparing the asset’s termination value (e.g. the sale proceeds) with its adjustable value (the cost of the asset less depreciation deductions).

  • If the asset’s termination is more than its adjustable value – you will need to include the difference in your assessable income
  • If the asset’s termination value is less than its adjustable value – you can claim a deduction for the difference.

If you’re in need of some more guidance, get in touch with one of our expert accountants via the link here:

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