Depreciation on blocks of assets introduced, altering depreciation calculation and capital gains treatment for asset transfers. The amending Act replaces asset by asset depreciation with a block of assets regime, prescribes accelerated rates for blocks, omits various initial and terminal depreciation provisions, and instructs that proceeds from sale or disposal reduce block written down value. It substitutes section 50 to treat excess consideration or the cessation of a block as deemed short term capital gain or loss, sets transitional written down value rules, and makes consequential amendments to related provisions.
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Depreciation on blocks of assets introduced, altering depreciation calculation and capital gains treatment for asset transfers.
The amending Act replaces asset by asset depreciation with a block of assets regime, prescribes accelerated rates for blocks, omits various initial and terminal depreciation provisions, and instructs that proceeds from sale or disposal reduce block written down value. It substitutes section 50 to treat excess consideration or the cessation of a block as deemed short term capital gain or loss, sets transitional written down value rules, and makes consequential amendments to related provisions.
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