Trade in Sale of Asset and Replacement Asset Calculator

“Quick Question. How much tax do I have to pay when I trade in my car for a new one?”

The June 2021 depreciation rules meant that all small businesses were forced to claim a 100% tax write off for all their assets, unless they specifically elected to opt out. This “sugar hit” was always just a tax deferral not a tax saving. We are starting to see clients incurring income tax claw backs on the trade in of old assets and being restricted on what they can claim on the replacement asset.

So we created a calculator that works out the GST payable and the Income Tax payable on the sale of an existing asset and the GST claimable and the Income Tax benefit on the replacement asset. It’s not as easy as you may think…..Depreciation cost limits, GST cost limits for motor vehicles, the instant asset write off of $20,000 (if it ever gets passed by Parliament), pooling or effective life choices, different rates of tax for companies and individuals - there is a lot to take into account!

The Trade in Sale of Asset and Replace Asset Calculator will make all of those choices and calculations a lot easier.