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XPA: Method for calculating the new investment boost for assets purchased after budget day in XPA

Updated over a month ago

You will need to create 2 asset records for the single asset:

  • 20% of the cost of the asset: depreciate this at 100% CP.

  • 80% of the cost of the asset: depreciate this at the applicable rate.

When the asset is sold, both assets need to be sold, where the sale price is:

  • Less than Book Value of the 80%: sell the 80% at the sale price, sell the 20% at 0.

  • Between the BV of 80% and the 80% cost: sell the 80% at the sale price, sell the 20% at 0.

  • Between the cost price of 80% and the cost: sell the 80% at the cost price, sell the 20% for the remainder of the Sale price.

  • Greater than cost price: sell the 80% at cost price, sell the 20% for the remainder of the Sale price.

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