13 Jun 2011

Buying IT before June 30? Think carefully!

Sydney Morning Herald – 13 June 2011

If you’re one of the scores of business owners that intend to buy a new computer in the next few weeks to reduce your taxable income, here’s a tip: you won’t get the full tax benefit if you buy IT equipment at the end of the financial year.

According to Dave Stevens, managing director of Brennan IT, which specialises in providing IT solutions to small and medium businesses, “if you buy something today you’re only going to be able to claim one month’s worth of depreciation in this financial year”.

If you’re keen to maximise your expenses to reduce your taxable income, an alternative to rushing out to buy IT equipment before midnight on June 30 is to structure and pre-pay a 12-month hardware rental agreement to claim a full year’s worth of expenses in the current financial year.

Read the full article