Deductible Balancing Adjustments

<p>Deductible Balancing Adjustments is the expense category where you record the difference between the proceeds of a depreciating asset and the written down value of that asset in the situation where the proceeds are less than the written down value of the asset. Essentially, a deductible balancing adjustment is the loss on disposal of a depreciating asset.

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Be sure to differentiate between capital losses and deductible balancing adjustments for tax purposes.&#160;

Assets that may yield a Deductible Balancing Adjustment include -&#160;

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Motor Vehicles

Plant &#38; Equipment

Fencing Assets

Fodder Storage Assets

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<li >If the asset’s termination value is&#160;<strong >less</strong>&#160;than its adjustable value, you are entitled to a deduction for the difference.</li>

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<h2 >Buildings and other capital works</h2>

<p >Deductions for certain depreciating assets, such as buildings and structural improvements, are dealt with separately under the capital works provisions.

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