URGENT: Loss on disposal of capital works asset

[accountant101]

Per ATO a balancing adjustment can be made for an capital works asset when it still has value remaining at time of replacement.

How can this be recorded in AE?

In partnership tax return, the capital works deductions schedule only allows input of disposal date - unable to integrate remaining value as a deduction in deductible balancing adjustments under item 18.

[Linda_K · Accepted solution]

Hi @accountant101,

Thank you for your post and welcome to the MYOB AE Community Forum.  I hope you find the forum a useful resource.

In regards to your query, the capital works deduction schedule in AE Tax is used to assist in the calculation of the amount of write up/off which then integrates this value into the respective label.  If there is a disposal date, the write up/off amount will be pro-rated.

However, if the balancing adjustment arises due to a disposal, this needs to be manually calculated and entered into the respective label in the the tax return.  You can read information on this topic by referring to the ATO website for more details.

I hope this helps.