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In this video, you will learn how to expense an asset completely from its first use.
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You will learn how to do this for a newly created asset or for an existing asset.
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Firstly, let's apply immediate depreciation to a newly created asset.
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On the left, navigate to Add Assets and add a single asset.
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I'll create a new asset, add a code, select a group, type in my cost, purchase date and location.
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On the right are the options for two depreciation types, tax depreciation and accounts depreciation.
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Instead of selecting the asset group's default, change the tax depreciation method to immediate.
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I'm going to save the asset and show you the result.
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So under the Tax tab of the asset screen, you can see that the depreciation method is immediate.
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You can see the purchase date, the cost of $2,000, the immediate depreciation of the full amount on the same date and the current tax value of $0.
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If I toggle to the Accounts tab, you can see that accounts depreciation is still at 10% prime cost.
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So that's how to add an immediate asset write-off for tax for a new asset.
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Now, let's look at how we do this for an existing asset.
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At the home screen, we can search for the asset. I'll search in my boardroom table.
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This particular asset was purchased on January 1, 2025.
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The tax depreciation is diminishing value of 10 years at 20% and for accounts, prime cost 10 years at 10%.
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If a mistake was made and we now need to change the method for tax to immediate,
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or maybe we wish to take advantage of the instant asset write-off for this financial year, let's look at how we would do this.
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We'll navigate to the Tax tab. You can see the monthly depreciation at the current rate.
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We go to Tax Actions, select Add Reassessment.
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You'll see a pop-up warning us to check and confirm that this reassessment is compliant with our local tax rules.
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If you're confident that this is the case, enter the reassessment date as at first use and change the method to immediate.
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Click Reassess.
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You can see that the depreciation has been adjusted to depreciate the full amount as at the first use date.
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In the Accounts tab, the system is still depreciating the asset as per our original settings.
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Prime cost over 10 years at 10%.
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In this video, we have covered how to apply immediate depreciation for tax from first use to a new asset,
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and also how to apply immediate depreciation for tax to an existing asset from its first use.
