MYOBCommunity
Partner Zone
|
|
Partner Zone

Assets - Small Business Pool in Credit

NatRay
1 Post
Cover User
Australia
NatRay
Cover User

1Posts

0Kudos

0Solutions

Assets - Small Business Pool in Credit

In AE Tax - assets have been sold out of the small business pool causing the ending pool balance to be in credit.

How do we fix this to show a zero balance?

1 REPLY
MYOB Staff Post Helen-Z
51 Posts
MYOB Staff Post
Australia
Helen-Z
MYOB Staff Post

51Posts

11Kudos

6Solutions

Re: Assets - Small Business Pool in Credit

 Hello @NatRay

 

Thanks for your post, and welcome to the MYOB Community Forum!

 

I've posted some links to the ATO's website that provide your solution:

 

If you have a look at the ATO's Calculating Pool Events, you will see that they advise "If you sell or otherwise dispose of an asset that formed part of a low pool value that has been previously written-off, you need to subtract the taxable purpose proportion of the asset's termination value in calculating the closing pool balance. If the balance (after acquisitions, cost additions and this adjustment) results in a negative amount, this amount must be included in your assessable income, and the pool's closing balance becomes zero."

 

If you're still unsure, check the ATO's Other Income, they advise that Item 24 Other Income includes "...any assessable balancing adjustment when you stop holding a depreciating asset (for example, because of its disposal, loss or destruction) for which you have claimed a deduction for depreciation or decline in value in previous years; your car is a depreciating asset".

 

 


Regards,

Helen
Tax Support Specialist
MYOB Australia Pty Ltd
Didn't find your answer here?
Try using advanced search to find a post more easily Advanced Search
or
Get the conversation started and make a new post Start a Post