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: www.moorelewis.com.au