For the tax experts - depreciating a Laptops

[kiwigeo]

Mate,

If you are after a desktop replacement laptop - check out the HP ZD8000 range. The ZD8004 model is going for around the $3000 mark including bonus external Digital TV Tuner. Now these are HUGE and have 17" Ultra Bright screens with full P4 3.2G processors so they are Heavy and battery life is not great (1.5 hours max). However, they are very, very powerful laptops (term used lightly) and the screen is mind blowing. I Salary Sacrificed one last month and love it.

I wish HP would get in a design consultant.....their portables are down right ugly.

Specs are impressive but $3000 would get you a very sexy Mac portable

[Wayne Davy]

Is it hard to justify the 100% work usage with an external Digital TV Tuner in the package?

Hehe Jack, I guess. However, I missed out on the Tuner deal (bought one month too early). Anyway, it would not matter as it is a freebee for tax purposes (we all know it is built into the cost but anyhoo). AND, you just say you dont use it in the lappy but in your kids/wifes/other pc

[Wayne Davy]

I wish HP would get in a design consultant.....their portables are down right ugly.

Specs are impressive but $3000 would get you a very sexy Mac portable

Kiwigeo,

I (and lots of my friends) think mine looks great - horses for courses I guess. I personally dont like the Mac Laptop designs - too white.

The pictures of these dont do them justice - check one out in real life.

[johnc]

As pointed out laptops don't attract FBT, only desktops. Your employer has made a claim for the machine which means you can not, even though the invoice is in your name. The basic principle is that you cannot claim twice for the one expense/cost. You are right in saying that some accountants seem to think that you can, and in all liklihood if you faced an ATO audit the production of the valid invoice would allow you to make the claim providing the ATO didn't twig the sacrifice arrangement existed. Laptops are depreciated items and I saw an earlier post with some rates, these have recently changed.

Your employer can claim the cost of the laptop outright, although if he had bought it for staff use (not salary sacrifice) it would also be depreciation in his hands.

JohnC

[ndru]

Your employer has made a claim for the machine which means you can not, even though the invoice is in your name. The basic principle is that you cannot claim twice for the one expense/cost...
Your employer can claim the cost of the laptop outright, although if he had bought it for staff use (not salary sacrifice) it would also be depreciation in his hands.

Correct, but Kiwi's question goes to "who can deduct for depreciation", which depends on whether or not the employer reduces the employee's salary to offset its cost of reimbursing the employee for the laptop purchase (ie the employee "salary sacrifices"). If there is no reduction in salary then the employer has incurred the cost and is able to make a depreciation deduction, not the employee. Income tax deductibility does not depend on if the employer incurs FBT expense on the purchase.

I had a look at the zd8004 and zd8005 yesterday. At 4.2kg the HP it isn't exactly "portable". I'm with Wayne on its appearance, though. Its refreshing to see some technology in a shiny black motif. I'm so over charcoal and brushed aluminium! The shabby chic Mac didn't appeal to me either - too sterile.

The only thing putting me off getting one is that our corporate sacrifice scheme only reimburse over a 12 month period. Will wait a few months until my cash situation improves a bit.

Wayne - I read somewhere that the Pavilion's keyboard gets hot (about 45C). Is this your experience?

[kiwigeo]

The only thing putting me off getting one is that our corporate sacrifice scheme only reimburse over a 12 month period. Will wait a few months until my cash situation improves a bit.

Interesting info.....one accountant I talked to reckoned that salary sacrificing had to involve reimbursment of the wmployee over a 1 year period to satisfy ATO regulations...she reckons she got this straight from the ATO but I cant find ANY reference to this on their website.

Bottom line seems to be that you can talk to 6 different people in the ATO and get 6 totally different answers. Not good enough in my opinion.

[kiwigeo]

Kiwigeo,

I (and lots of my friends) think mine looks great - horses for courses I guess. I personally dont like the Mac Laptop designs - too white.

The pictures of these dont do them justice - check one out in real life.

Did the HP/Compaq portable thing and hated the machines.....I have HP to thank for spurring me into making the changeover to the dark side.

Interesting comments from you about your keyboard running hot. 45 deg C is very hot.....is the fan kicking in as it should be? My last (HP) laptop had serious overheating problems and it was after the third cooked motherboard had been replaced. Clearance between the underchasis fan and surface computer sat on was the issue.....basically very bad design.

[Sturdee]

Bottom line seems to be that you can talk to 6 different people in the ATO and get 6 totally different answers. Not good enough in my opinion.

And often none of them is the correct one. If you want to rely on ATO advice the only certain way is to get it in writing.


Peter.

[kiwigeo]

And often none of them is the correct one. If you want to rely on ATO advice the only certain way is to get it in writing.

Peter.

Yes agreed....it will be done when I get the time. Fitting out my new workshop more important task at present.

[johnc]

A direct answer to who gets a deduction for depreciation, no one. Oddly enough in the case of salary sacrifice on lap tops the employer can write it off in one hit, but only when bought under salary sacrifice. In normal circumstances its depreciation, and company rates are generally the same as employee rates unless you're in the simplified tax system which I might add is an oxymoron.

JohnC

[kiwigeo]

A direct answer to who gets a deduction for depreciation, no one. Oddly enough in the case of salary sacrifice on lap tops the employer can write it off in one hit, but only when bought under salary sacrifice. In normal circumstances its depreciation, and company rates are generally the same as employee rates unless you're in the simplified tax system which I might add is an oxymoron.

JohnC

John.....I dont think employer can write off full price of laptop when it's part of an employees salary sacrifice package...they can only claim GST portion of price.

I will ask ATO this when I cocntact them and get back with their answer.