Tax Depreciation Schedule

Transcription

1 PO BOX 7052 East Ballina NSW 2478 Web: eighty8valuers.com.au Mobile: ABN Tax Depreciation Schedule Property Address: Abode2 Sample report Client: Date of Inspection: Job Number: Liability limited by a scheme approved under Professional Standards Legislation.

2 Introduction Pursuant to your instructions, eighty8valuers has pleasure in providing this Tax Depreciation Schedule for your Abode2 at... In providing this schedule, we have given due diligence to the requirements outlined in Tax Ruling 97/25 and subsequent amendments under the Income Tax Assessment Act. We have completed a site measurement of the investment property and taken relevant photographs. We have adopted the client advised Tenancy Date of. The Adobe2 has been fully depreciated at the end of the 40 year summary. This example of deductible items has been completed by Matt Benson of eighty8valuers who is a Tax Practitioners Board Approved Quantity Surveyor. The sample report is general information only and will alter in line with specific site conditions, individual specifications and purchase dates. The figures above should not and cannot be used for individual use. It is not intended to be advice and you should not act specifically on the basis of this information. Before making any financial or investment decisions, we recommend you consult a Financial Planner to take into account your particular investment objectives, financial situation and individual needs. Schedule Contents Method Statement Summary of Depreciation and Capital Allowances Conclusions Calculations Division 43 Capital Works Allowances Main Building Division 43 Capital Works Allowances Structural Improvements Division 40 Plant and Equipment Diminishing Value Method Division 40 Plant and Equipment Prime Cost Method Disclaimers/Limitations and Certification Tax Depreciation Schedule Abode2 at..

3 Method Statement Depreciating assets refers to items which have a limited effective life and will decline in value over a period of time. This schedule of depreciating assets provides an itemised list of all assets contained within the property and the corresponding cost of the asset to the property owner. Depreciation rates are based on the asset s calculated effective life. This Depreciation and Capital Allowances Schedule has been prepared in accordance with our knowledge and interpretation of the Income Tax Assessment Act 1997 and subsequent amendments and other relevant legislation in effect as at the date of this report. The first year s claim is adjusted to coincide with the tenancy date and does not represent a full year s depreciation. The methodology used to determine the Capital Works and Plant and Equipment Allowances within this report are as follows: Division 43 Capital Works Allowances The Capital Works Allowances have been calculated using the historical construction costs of the eligible capital works. The historical construction costs include fees for preliminary items such as design fees, engineering and building approval costs. When actual costs are not known, a Quantity Surveyor has estimated this amount by determining the appropriate costs for the building/structural improvement of this specification as at the date of construction. The percentage rate at which the building depreciates is determined by the construction completion date. For strata title units, we have inspected the common area improvements and apportioned the historical construction cost and associated depreciation allowances based on the relevant lot entitlement of the specific unit. Division 40 Plant and Equipment Allowances The eligible plant and equipment items have been costed as at the date of purchase, having regard to the market value of the item together with its new replacement cost and its relative age. For the depreciation allowances relating to the plant and equipment articles, both the Diminishing Value and Prime Cost Depreciation Methods have been outlined in this report. Which depreciation method to use will depend on your specific circumstances. As you cannot alternate between methods, it is recommended this decision be discussed with your Accountant or Financial Adviser. The effective lives used in assessing these allowances have been determined in regard to Tax Ruling 2000/18 and subsequent amendments or by using value judgments based on the age, use and condition of the item. 3 Tax Depreciation Schedule Abode2 at..

4 Eligible plant and equipment items with a cost of less than $300 qualify for an immediate full deduction and have been treated accordingly in our calculations. Eligible plant and equipment items with a cost of between $300 and $1,000 as at the end of the income year have been pooled into a lump sum and depreciated in accordance with the Australian Taxation Office guidelines. Summary of Depreciation and Capital Allowances In the table below we have provided a 20 year summary of the eligible depreciation and capital allowances as at the date of tenancy and legislation as at the date of assessment. You have the option of adopting either the Diminishing Value Cost Method or the Prime Cost Method. The method you adopt is dependent on your personal financial circumstances. When you have adopted one of the methods, you must continue with this method for the life of the investment. A qualified Income Tax Practitioner can advise the best depreciation method based on your particular circumstances. 4 Tax Depreciation Schedule Abode2 at..

5 THE DIMINISHING VALUE COST METHOD (40 YEAR SUMMARY) Year Building Structural Plant & Allowance Improvements Equipment Total 2014/15 $968 $34 $1,520 $2, /16 $3,212 $113 $1,609 $4, /17 $3,212 $113 $1,140 $4, /18 $3,212 $113 $1,004 $4, /19 $3,212 $113 $697 $4, /20 $3,212 $113 $495 $3, /21 $3,212 $113 $362 $3, /22 $3,212 $113 $271 $3, /23 $3,212 $113 $208 $3, /24 $3,212 $113 $384 $3, /25 $3,212 $113 $240 $3, /26 $3,212 $113 $150 $3, /27 $3,212 $113 $94 $3, /28 $3,212 $113 $59 $3, /29 $3,212 $113 $37 $3, /30 $3,212 $113 $23 $3, /31 $3,212 $113 $14 $3, /32 $3,212 $113 $10 $3, /33 $3,212 $113 $6 $3, /34 $3,212 $113 $3 $3, /35 $3,212 $113 $2 $3, /36 $3,212 $113 $1 $3, /37 $3,212 $113 $1 $3, /38 $3,212 $113 $0 $3, /39 $3,212 $113 $0 $3, /40 $3,212 $113 $0 $3, /41 $3,212 $113 $0 $3, /42 $3,212 $113 $0 $3, /43 $3,212 $113 $0 $3, /44 $3,212 $113 $0 $3, /45 $3,212 $113 $0 $3, /46 $3,212 $113 $0 $3, /47 $3,212 $113 $0 $3, /48 $3,212 $113 $0 $3, /49 $3,212 $113 $0 $3, /50 $3,212 $113 $0 $3, /51 $3,212 $113 $0 $3, /52 $3,212 $113 $0 $3, /53 $3,212 $113 $0 $3, /54 $3,212 $113 $0 $3, /55 $2,244 $79 $0 $2,323 TOTALS $128,490 $4,500 $8,330 $141,320 5 Tax Depreciation Schedule Abode2 at..

6 THE PRIME COST METHOD (40 YEAR SUMMARY) Year Building Structural Plant & Allowance Improvements Equipment Total 2014/15 $968 $34 $1,119 $2, /16 $3,212 $113 $774 $4, /17 $3,212 $113 $774 $4, /18 $3,212 $113 $774 $4, /19 $3,212 $113 $774 $4, /20 $3,212 $113 $774 $4, /21 $3,212 $113 $774 $4, /22 $3,212 $113 $774 $4, /23 $3,212 $113 $458 $3, /24 $3,212 $113 $378 $3, /25 $3,212 $113 $347 $3, /26 $3,212 $113 $278 $3, /27 $3,212 $113 $225 $3, /28 $3,212 $113 $101 $3, /29 $3,212 $113 $3 $3, /30 $3,212 $113 $0 $3, /31 $3,212 $113 $0 $3, /32 $3,212 $113 $0 $3, /33 $3,212 $113 $0 $3, /34 $3,212 $113 $0 $3, /35 $3,212 $113 $0 $3, /36 $3,212 $113 $0 $3, /37 $3,212 $113 $0 $3, /38 $3,212 $113 $0 $3, /39 $3,212 $113 $0 $3, /40 $3,212 $113 $0 $3, /41 $3,212 $113 $0 $3, /42 $3,212 $113 $0 $3, /43 $3,212 $113 $0 $3, /44 $3,212 $113 $0 $3, /45 $3,212 $113 $0 $3, /46 $3,212 $113 $0 $3, /47 $3,212 $113 $0 $3, /48 $3,212 $113 $0 $3, /49 $3,212 $113 $0 $3, /50 $3,212 $113 $0 $3, /51 $3,212 $113 $0 $3, /52 $3,212 $113 $0 $3, /53 $3,212 $113 $0 $3, /54 $3,212 $113 $0 $3, /55 $2,244 $79 $0 $2,323 TOTALS $128,490 $4,500 $8,330 $141,320 We have adopted the client advised Tenancy Date of 13 March Tax Depreciation Schedule Abode2 at..

7 Conclusions We have prepared this Tax Depreciation Schedule for taxation purposes to assist you assess the eligible deductible entitlements of your investment property. This report should be used in close consultation with your Income Tax Practitioner. This report has been prepared on the assumption that there are no Input Tax Credits and therefore Goods and Services Tax (GST) is included in the appropriate items. You should, in consultation with your Accountant, review your Depreciation and Capital Allowances Schedule regularly as the tax legislation associated with investment properties is subject to change. Calculations Building Component (Main Building Only) - Capital Works Allowance Division 43 We have calculated the original construction cost of the eligible capital works from historical data. These costs have been assessed by a Certified Practicing Valuer and Builder registered with the Tax Practitioner s Board. All of the various eligible capital works improvements have been consolidated into one lump sum and depreciated using the applicable Prime Cost Depreciation Rate. The calculations in the table below are for the main building component only. Any external works, structural improvements or additions are detailed in Structural Improvements Capital Works Allowance Division 43. Construction Date Cost at Construction Date Prime Cost Rate 2014/ /16 Pro Rata 2015 $128, % $968 $3,212 Totals $128,490 $968 $3,212 7 Tax Depreciation Schedule Abode2 at..

8 Structural Improvements - Capital Works Allowances Division 43 We have calculated the original construction cost of the eligible capital works from historical data. These costs have been assessed by a Certified Practicing Valuer and Builder registered with the Tax Practitioner s Board. All of the various eligible structural improvements have been consolidated into one lump sum and depreciated using the applicable Prime Cost Depreciation Rate. Construction Date Cost at Construction Date Prime Cost Rate 2014/ /16 Pro Rata 2015 $4, % $34 $113 Totals $4,500 $34 $113 8 Tax Depreciation Schedule Abode2 at..

9 Division 40 Plant and Equipment Diminishing Value Method During the inspection of the subject property, the plant and equipment items detailed in the table below were identified as being eligible for depreciation. We have adopted the Written Down Value of each item as at the date of tenancy. The depreciation rates applied is in accordance with the effective life of the item as published in the Income Tax Effective Life of Determination and amendments thereafter. In the table below, bold items drop into the Low Value Pool once they have a depreciated opening value of less than $1,000. Plant and Equipment Item Value as at Tenancy Date Diminishing Value Rate First Year Diminishing Value Rate Subsequent Years Financial Year 2014/ / / / / / / / / /24 Carpet $ % 37.50% $186 $302 $189 $118 $74 $46 $29 $18 $11 $7 Water Pump $1, % 15.00% $47 $369 $230 $144 $90 $56 $35 $22 $14 $9 Cook Top $ % 37.50% $60 $98 $61 $38 $24 $15 $9 $6 $4 $2 Floating Timber $2, % 13.33% $120 $381 $330 $286 $248 $215 $186 $161 $140 $341 Floor Hot Water System $1, % 16.67% $65 $204 $170 $318 $199 $124 $78 $49 $30 $19 Oven $ % 37.50% $98 $158 $99 $62 $39 $24 $15 $9 $6 $4 Window Treatments $ % 37.50% $60 $98 $61 $38 $24 $15 $9 $6 $4 $2 $300 Immediate Write Off $ % $886 Totals $8,330 $1,520 $1,609 $1,140 $1,004 $697 $495 $362 $271 $208 $384 Plant and Equipment Item Value as at Tenancy Date Diminishing Value Rate First Year Diminishing Value Rate Subsequent Years Financial Year 2024/ / / / / / / / / /34 Carpet 18.75% 37.50% $4 $3 $2 $1 $1 $1 Water Pump 15.00% 15.00% $5 $3 $2 $1 $1 $1 Cook Top 18.75% 37.50% $1 $1 $1 $1 Floating Timber 13.33% 13.33% $213 $133 $83 $52 $33 $20 $13 $8 $5 $3 Floor Hot Water System 16.67% 16.67% $12 $7 $5 $3 $2 $1 $1 $1 Oven 18.75% 37.50% $2 $1 $1 $1 $1 Window 18.75% 37.50% $1 $1 $1 Treatments Totals $240 $150 $94 $59 $37 $23 $14 $9 $5 $3 9 Tax Depreciation Schedule Abode2 at..

10 Division 40 Plant and Equipment Prime Cost Method During the inspection of the subject property, the plant and equipment items listed in the table below were identified as being eligible for depreciation. We have adopted the Written Down Value of each item as at the date of tenancy. The depreciation rates applied is in accordance with the effective life of the item as published in the Income Tax Effective Life of Determination and amendments thereafter. Financial Year Plant and Equipment Item Value as at Tenancy Date Prime Cost Rate 2014/ / / / / / / / / /24 Carpet $ % $30 $99 $99 $99 $99 $99 $99 $99 $99 $99 Water Pump $1, % $23 $77 $77 $77 $77 $77 $77 $77 $77 $77 Cook Top $ % $8 $27 $27 $27 $27 $27 $27 $27 $27 $27 Floating Timber Floor $2, % $120 $397 $397 $397 $397 $397 $397 $397 $80 Hot Water System $1, % $32 $107 $107 $107 $107 $107 $107 $107 $107 $107 Oven $ % $13 $43 $43 $43 $43 $43 $43 $43 $43 $43 Window Treatments $ % $7 $24 $24 $24 $24 $24 $24 $24 $24 $24 $300 Immediate Write Off $ % $886 Totals $8,330 $1,119 $774 $774 $774 $774 $774 $774 $774 $458 $378 Plant and Equipment Item Value as at Tenancy Date Prime Cost Rate Financial Year 2024/ / / / / / / / / /34 Carpet 10.00% $69 Water Pump 7.50% $77 $77 $77 $77 $2 Cook Top 8.33% $27 $27 $19 Floating Timber Floor 13.33% Hot Water System 8.33% $107 $107 $75 Oven 8.33% $43 $43 $30 Window Treatments 7.50% $24 $24 $24 $24 $1 Totals $347 $278 $225 $101 $3 10 Tax Depreciation Schedule Abode2 at..

11 Disclaimers/Limitations and Certification This Tax Depreciation Report has been prepared on specific instructions from.. to provide a Tax Depreciation Schedule for taxation purposes and cannot nor should not be used for any other purpose. This report is not to be relied upon by any other person or for any other purpose. We accept no liability to third parties nor do we contemplate that this report will be relied upon by third parties. We invite all other parties who may come into possession of this report to seek our written consent to them relying on this report. We reserve our right to withhold consent or to review the contents of this report in the event that our consent is sought. An inspection of all readily accessible parts of the improvements of the property has been carried out by the inspecting ATO recognised Quantity Surveyor. We have not sighted a qualified Engineer s structural survey of the improvements or its plant and equipment. The Quantity Surveyor is not a building construction and/or structural expert. The Quantity Surveyor s inspection and report does not constitute a structural, survey, building, pest, flood, town planning, contamination or geotech report and is not intended as such. This schedule assumes the existing improvements are Council approved. This report has been prepared for the private and confidential use of the instructing party. No extract from this report may be included in any other document without the Quantity Surveyor s prior written approval. In the preparation of this report we have not made any allowance for future legislative amendments. The Tax Depreciation Schedule has been carried out by: Prepared: Qualifications: Matt Benson Australian Taxation Office recognised Quantity Surveyor, Certified Practicing Valuer Licensed Builder approved to carry out Tax Depreciation Schedules by the Tax Practitioner s Board. eighty8valuers approved to charge a fee for Tax Depreciation Schedules by the Australian Taxation Office Licensed Builder (NSW) No C Tax Agent Registration No (Matt) Tax Agent Registration No (eighty8valuers) ABN Tax Depreciation Schedule Abode2 at..