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Capital allowance Question

bbam · 2013-10-09 18:43:47

Just a quick question.. Regarding electronic equipment that will have a useful life expected to be 3-4 years.. How is this reflected as Capital allowance if it has to be over 8 years.. A laptop would be an example... never going to last 8 years.. But do I just do it over 8 years anyway ??

09-10-2013 6:43pm

#1

bbam

Closed Accounts Posts: 7,410 ✭✭✭

Join Date: February 2007

Posts: 7139

Just a quick question..
Regarding electronic equipment that will have a useful life expected to be 3-4 years.. How is this reflected as Capital allowance if it has to be over 8 years..

A laptop would be an example... never going to last 8 years..

But do I just do it over 8 years anyway ??

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Comments

#2 09-10-2013 6:46pm

nompere

Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭

Join Date: December 2006

Posts: 1647

Just claim 12.5% per annum - and then when you scrap it you get the rest of the cost as a balancing allowance.

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#3 09-10-2013 6:47pm

mkdon05

Registered Users, Registered Users 2 Posts: 766 ✭✭✭

Join Date: April 2006

Posts: 674

What you charge in your accounts is depreciation to reflect the life of the asset, the tax man disallows this and instead allows you the capital allowance of 12.5% per year.

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