|Top Previous Next|
Capital Allowances are Deductions for Fixed Assets
Capital allowances are deductions you can claim for wear and tear of qualifying fixed assets bought and used in your trade or business.
Fixed assets "wear and tear" or depreciate over time.
Calculating Capital Allowances Source : IRAS website
Businesses can claim capital allowances when the expense has been incurred.
Fixed assets can be purchased in cash or hire purchase
At [Fixed Asset] , click [Asset Master]
Click [Add], click here to continue to add a new fixed asset
At the [Capital Allowance] tab, indicate the purchase type as shown below
If you select [Cash Purchase] , the Hire Purchase field will be disabled
Click here for Hire purchase fixed asset
Low Value Assets
Companies may choose to write off low-value assets in one year provided certain conditions are satisfied. A low-value asset is one that does not cost more than $5,000.
Companies that do not wish to use the one-year write-off may write off the cost of the asset over three years or its prescribed working life.
Source : IRAS