How to enter mixed asset use in Capital assets?
Article ID
ias-5137
Article Name
How to enter mixed asset use in Capital assets?
Created Date
7th December 2007
Product
IRIS Personal Tax
Problem
Is it possible to set up an asset that was used partly as a business and partly as a non-business? Note that from 2009 onwards this option is greyed out as it is no longer required for taper relief purposes.
Resolution
Users are required to:
1. Log on to IRIS Personal Tax, select the client and choose 2008
2. From the Edit menu select Capital Assets
3. Click the Assets option on the left, click the asset on the right then click Edit.
4. Set the asset use to Shared then enter the overall business use percentage into the box and click OK.
Example: if the asset was held for 10 years, seven of which were as a business asset, enter 70%.
From 2009 onwards if clients would like to enter this in they will have to be entered manually by:
1. Entering the asset twice in edit | capital assets | assets
2. Apportion the figures in each asset, so that in one asset it shows the amount that will be used for business use and the other asset shows the amount that will be use for non-business use.
3. For the asset that will used for business use go to disposals | set up the disposal if not setup already, if it is then just highlight the disposal and tick ‘entrepreneurs relief’ | Update.
4. For the asset that will used for non-business use leave the entrepreneurs box unticked.
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