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hello
i would like to know
say in the beggining of business the company buys a high co2 car for $15000. = 1 april 2012
the company quickly disposes off the high co2 car for $10 000 on 31 june 2012. it does not have any other assets in the special rate pool prior to this disposal.so how will you account this in the capital allowance
special rate pool
high co2 car 15000
– disposal (10 000)so the balance of 5000 will you calculate wda on it or it will just be 5000 in the total allowance????
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there is no WDA (or AIA or FYA) in the year of disposal. 5000 will be the balancing allowance.
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no . i am not. i am sorry.
If the car was used for business(70%) and personal use(30%) then the business percentage of the 5000 would be calculated, prorated for the number of months owned (3 months in your example) and would be a balancing allowance and be added to allowances. 5000*70%*(3/12) = 875
If the car was only for business use then it will go into the special rate pool and a WDA (8%) would be calculated prorated. 5000*8%*(3/12) = 100
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