Fixed Assets | General Pool Write Off
Under current simplified depreciation rules, small businesses deduct the balance of the small business pool at the end of the income year if the balance at that time (before applying the depreciation deductions) is less than the instant asset write-off threshold.
Currently Xero's pool does not apply this rule & continues depreciating at 30%. It would be great to have a product update so the correct application of current tax rules applys to the pooling system in Xero.
Alanah Beard
shared this idea
Appreciate the traction this idea's gained - Thanks for your support, everyone.
Our Fixed Asset product team are working on upgrades to Fixed Assets platform and updating technology - Read more on this broader work on Xero Central
We understand how having an automated control to recognise and apply a write-off for general pooled assets where the balance is beneath the threshold would be useful, this is not in our roadmap right now.
That said, they have a close eye on ideas for Fixed Assets for when the time's right - we'll share any change on the idea, here.
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Ben McConnell
commented
Thanks Alanah. Vital to highlight to clients impact of tax depreciation going forward.
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Tara Brace
commented
This is critical to accuracy of tax depreciation reports.
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Andrew Dick
commented
This would be great to be able to comply with rules and use the system rather than having to work outside the system to be able to comply