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hi sir im doing a question and it says the accounting year ends on 31december,if the machine is purchased,payment will be made in january of the first year of operation,if leased annual lease rentals will be paid in january of each year of operation…my question is when will i claim WDA in year 0 or year 1
You would assume that the asset was bought on 1 January, and therefore if you are told that ‘tax is payable immediately” you would get the first tax saving at time 1. If you are told that ‘tax is payable one year later’ then you get the first tax saving at time 2.
( if you are not told when tax is payable the assume ‘tax payable immediately’ but state your assumption )
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