Although most small business owners do not use the instant asset write-off, it can be a substantially valuable tax break that can help facilitate upgrades that will help your business in the long term. The tax break can cover up to $30,000 in capital assets, including major upgrades to IT infrastructure, motor vehicles, and a wide variety of office equipment. It can also be used to make your premises more pleasant for customers, or by better tools.
- According to an expert organization many businesses are ignorant about the instant asset write-off and that there are tax breaks for their capital items.
- Small businesses can use the tax break on capital items to acquire several items which include laptops, computer and any kind of IT equipment.
- The author believes that for businesses to get a deduction for getting a new IT equipment makes sense because old equipment causes loss of time and resources.
“If you’re planning to give a small business a boost, the instant asset write-off is a great way to tax effectively fund the expansion and efficiency of the business and, at the same time, reduce taxable profits.”