Q: A business client with an annual turnover of $4 million for both the 2016 and 2017 financial years. For the 2017 financial years, are he eligible to use the small business simplified depreciation rules? If yes, and he has individual assets with a written down value below $20,000 on July 1, 2016, can these assets be immediately written off or do all assets need to be allocated to the general pool?

Q: I have a small business entity that purchased an asset for $22,000 including GST (net $20,000). The instant asset write-off provisions indicate that you can write off assets less than $20,000 and assets $20,000 or more are capitalised. On this basis, I need to capitalise the asset for $20,000 rather than expense to profit and loss account. Is this your understanding of the legislation?

Q: A client operates under a discretionary trust. In 2003, they purchased the freehold ($350,000) and leasehold ($150,000) to a motel for let's say $500, 000. They on hold the leasehold operation prior to settlement. The client continued to own the freehold until they purchased the leasehold in February 2012. The client intended to own and operate the motel indefinitely. However, due to unforeseen circumstances, the motel was subsequently closed down. The motel site was then demolished and sold as vacant land during the current financial year for $1.5 million.