Hi,
I was wondering if anyone has any information on how much money you can save/get back from buying an Aeron ($1395) and what other requirements there are for it. I haven't really been able to find anything about it for items over $300. Thanks
Tax Deduction for Herman Miller Chair?
Lryanwe on 01/06/2019 - 12:34
Comments
Depreciation depends on how many crumbs you leave.
What's your job?
Software engineer
…how much money you can save/get back…
That's not how a deduction works. You don't save anything more get anything back.
It is deducted from your taxable income.
Reminds me of negative gearing. Over the last 10 years all i have heard is "i want to buy a property to negative gear for tax benefits".
Spend a dollar to get 30 cents back
"the government is giving more money to the rich".
These are all statements borne from a lack of fundamental understanding of basic tax laws.
"the government is giving more money to the rich".
These are all statements borne from a lack of fundamental understanding of basic tax laws.
Qantas pays no tax.
Google pays no tax.
Facebook pays no tax.
What am I not understanding?
Or are you just acting like a typical lower class person and attacking those around you and leaving the rich to pay no tax?
You're correct about tax incentives though: the goal should be maximising capital or income gains rather than sheltering income from tax.
Or are you just acting like a typical lower class person and attacking those around you and leaving the rich to pay no tax?
There goes the silly lower class acting like lower class again, can't the bogans see that, us - the champagne socialists, are trying to help you! ha ha ha silly blue collar workers. You and I Diji, we are much better than the Gammas and Deltas.
"I don't want to earn more because I'll pay more tax."
@lainey13: Technically true.
You will definitely pay more tax and you can exceed the threshold for certain benefits.
Not always the case.
Maybe profit of 5k then claim 15 k depreciation expense while capital gain of 15% per year. If you reside in it for a short time no capital gains tax eitherYou can negative gear the house you reside in?
That's news to all the tax accountants out there
@chumlee: you negative gear it once you stop living in it, but can claim cgt free if lived in previously and the period of not living in is < 6 years.
@chumlee: if you mean when you move to another a place you can't keep the previous one as your PPOR, then this is not correct.
you can make the choice of what your PPOR is when a CGT event occurs, until then no decision to make
if you buy house A in 2000 and live in it then buy house B in 2004 and move to it, then sell A in 2008
you can for the period of 2004-2008 when two properties have the potential to be your PPOR.1.) sell A CGT free and then lose that 4 year CGT exempt status on B when it comes time to sell it.
2.) sell A with CGT on 4/8ths of the profit * .5, i.e. you will pay CGT on 25% overall t your tax rate.you make the decision at the time you sell a property which one you want to be you PPOR.
why not, i was going to buy 100 of these chairs.
You're going to be so rich with all the government tax money.
That's the one I was looking at buying, how much are these at a typical EOFY sale, if you know?
I was trying to look it up, but nothing. From what I recall it's worth it. Keep an eye out for sale price on their website. Or you may be able to register on the website and get an email when sales are on. Also if you have an ABN number you can get a further discount or at least one as a trade price from now.
How does the ABN discount work. Do you supply it to them or do you just register as a business with them
@ryanwe: I think it is only if you are a interior designer or architect. You'd have to register your business with them. Had another look for pricing. Last year $1250. Delivery $80 or you can pick up if near store of warehouse from what I recall. Still worth waiting and picking up if possible.
If you take it carry on overseas you can claim TRS back :D Just make sure invoice has your address on it :D
Great as carry-on for your trip, very comfortable chair!
It's either a deduction (because it is an expense incurred directly in the generation of income) or it's not. Therefore it's either fully deductable at the tax rate relevant to you or it's not deductable at all.
Why people down vote this correct answer?
because its not correct entirely.
if i had a guess (i use an accountant).
since its > $300 your depreciate it over 3 years (1095 days) its not an instant tax deducation in one tax year.
if chair is $1200 and used for 50% for work in a home office, the amount to depreciate is $600 over three years
but i also believe you cant just say you had the chair for a whole tax year if you bought it June 1st. you have to pro rata it, i.e. if bought today and if you had tax rate of 34.5% at your highest level.
year 1 is $600 * (30/1095) =$16.40 @ 34.5% = ~$5 less tax paid
year 2 is $600 * (365/1095) =$200 @ 34.5% = ~$69 less tax paid
year 3 is $600 * (365/1095) =$200 @ 34.5% = ~$69 less tax paid
year 4 is $600 * (335/1095) =$183.56 @ 34.5% = ~$64 less tax paid
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$600that is what i think, but i really don't know 100% as i pay someone to do this cr*p
Ehh wouldnt you use declining value taxation? (Or what ever its called) write off 50% first year 35% second and 15% last year?
@Seedy seed: I don’t know I’m not an accountant, this is just what I think it is, which I clearly stated….
If you know better then that’s great, correct it
@Donaldhump: Its the same style of tax just a differing depreciation Schedule.
I wasnt trying to one up you, i was just asking why you personally choose one over the other as both can be good in certain situations. As you said though im not an accountant :)
I'm not an accountant but can't the chair be an instant tax write off because it is under $30k?
I didn't realize it is personal income tax. If you got ABN that would be much easier, consider the instant off set threshold is $30k in 2019.
Talk to an accountant.
Are you self employed via P/L? Employee? Claiming home office or going to truck the Aeron to work? How are you going to appropriate usage if it's a home office scenario?
Unfortunately chairs have a effective life of 10 years, you may need to depreciate it over 10 years….
https://www.ato.gov.au/law/view/document?DocID=TXR%2FTR20184…
Oh an Embody is more comfortable and I bought a pair of them (ex-demo) from Living Edge for $600 each. Bought an Aeron size C brand spanking new fully loaded from them 2 years ago for $895. Too bad you've just missed their warehouse sale.
Not self employed, home office.
Damn, that's a shame that I missed the warehouse sale, always ruled out an aeron as a possibility due to the insane price point. $895 is an absolute insane bargain!
Proportion it to how much you use it for work in a home office and how much you use it for leisure