50% Investment Allowance - Last Days

[Macquack]

The 50% Investment Allowance for small business (turnover under $2 million) ends on the 31st December, 2009.http://www.ato.gov.au/taxprofessionals/content.asp?doc=/Content/00175431.htm

I have a question for the tax gurus. If I purchase a new company car by the deadline (say $50,000) for my small business - am I entitled to a tax deduction of 50% x $50,000 = $25,000 plus 40% x $50,000 x 0.5 = $10,000 being the depreciation for the remainder of the tax year = a total of $35,000?

BTW, the new "simplified depreciation rules" appear to be more complicated.

 

[kincella]

you claim the investment allowance of $25,000
then you claim the Capital Allowance....Depreciation for an ordinary car, its effective life is 8 years...= 12.5% rate diminishing value method
so 50,000 x ......12.5 = 6250 @ 200% = 12500 x 182/365 apportioned by days
= claim 6250 for this year
less any private use
so the claim for 2010
is 25000
+ 6250 less private use

in the 'old days' car depreciation was 22.5% DV
so 50,000 x 22.5% = 11250
so effective life was roughly 5 years

the ATO site is like a dogs breakfast now....no simple answer, waste hours searching...it used to be a good site, with qucik and easy answers
talk to a tax accountant