DEPRECIATION SCHEDULE. 164 Sample Drive, Burwood VIC 3125

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DEPRECIATION SCHEDULE 164 Sample Drive, Burwood VIC 3125 Call us on: 0430 318 398

1 DEPRECIATION SCHEDULE 164 Sample Drive, Burwood VIC 3125 Call us on: Postal Address: P.O. Box 22 Greensborough VIC 3088

2 TABLE OF CONTENTS Section 1 Property Information Client Details Property Summary Inspection & Report Details Report Notes Important General Notes... 3 Section 2 Capital Expenditure Summary of Capital Expenditure Capital Expenditure Deductions... 5 Section 3 Diminishing Value Method Diminishing Value Summary Diminishing Value Detail Years 1 to Section 4 Prime Cost Method Prime Cost Summary Prime Cost Detail Years 1 to Section 5 Graphical Representation Yearly Claims Diminishing Value vs. Prime Cost Accumulative Claims Diminishing Value vs. Prime Cost Section 6 - Terms & Conditions...11 Depreciation Report Sample Page 1 of 11

SECTION 1 PROPERTY INFORMATION 1.1 Client Details Name: John Samples Address: 123 Pretend Road, Bayswater North VIC 3153 Phone: 0400 111 222 Email: samplename@email.com 1.

3 SECTION 1 PROPERTY INFORMATION 1.1 Client Details Name: John Samples Address: 123 Pretend Road, Bayswater North VIC 3153 Phone: samplename@ .com 1.2 Property Summary Property Address: 164 Sample Drive, Burwood VIC 3125 Building Type: 3 bedroom house Settlement Date: 10 th April 2017 Purchase Price: $605, Inspection & Report Details Inspection Date: Tuesday 18 th April 2017 Inspection Time: 12:30pm Date of this Report: Tuesday 18 th April Report Notes There have been pre-purchase renovations and improvements to the property, where the costs of same have not been provided to me, therefore these costs have been estimated. Depreciation Report Sample Page 2 of 11

1.5 Important General Notes The following report details the depreciation and associated tax allowances that may be available to the owner(s) in accordance with the Income Tax Assessment Act 1997.

4 1.5 Important General Notes The following report details the depreciation and associated tax allowances that may be available to the owner(s) in accordance with the Income Tax Assessment Act For the purposes of this report, the following allowances have been assessed; a. Allowances for Plant and Equipment expenditure in accordance with the current list of depreciable assets made available by the Commissioner of Taxation which qualify under Division 40 of the Income Tax Assessment Act b. Capital Works Allowance on the building, and any applicable structural improvements in accordance with Division 43 of the Income Tax Assessment Act Where detailed construction costs have not been provided to us, these costs have been estimated using the construction cost of similar buildings, of a similar quality, constructed around the time of this building. We have based our assessment of the depreciation available at this property on our interpretation and understanding of the intentions of the Commissioner of Taxation, and used the following information, publications and references; a. Written and verbal information provided by the client. b. The Income Tax Assessment Act c. The ATO s Guide to Depreciating Assets d. Taxation Ruling TR e. Rawlinsons Australian Construction Handbook. f. Cordells Construction Cost Guide. This report details the allowances based on both the Diminishing Value and Prime Cost methods. Under Division 40 of the Income Tax Assessment Act 1997, you must choose one of these methods of depreciation, and cannot alternate between them. There is a graphical representation of the two methods in Section 4 of this report to assist in the decision making process, which should be done based on specific advice from your tax accountant. The calculations for the Year 1 claims have been adjusted for the number of days the property was owned/used for the purposes of generating income in that tax year, as defined by the Income Tax Assessment Act This depreciation schedule has been prepared, and must be read and used in accordance with the Terms & Conditions detailed in Section 5 of this report. Correct Inspections does not accept any contractual, tortuous or other form of liability for any consequences, loss or damage, which may arise as a result relying on this report. Should the reader of this report have any questions in relation to the contents set out within it, please do not hesitate to contact us. Thank you for choosing Correct Inspections to prepare your depreciation schedule. We have no doubt you will be delighted by our schedule, so please tell your friends Yours faithfully, Brett Whittingham m: e: brett@correctinspections.com.au Depreciation Report Sample Page 3 of 11

5 SECTION 2 CAPITAL EXPENDITURE 2.1 Summary of Capital Expenditure Division 40 Decline in Value Deductions on Plant The plant listed in this schedule complies with the current list of depreciable assets made available by the Commissioner of Taxation which qualify under Division 40 of the Income Tax Assessment Act The depreciation rates used are in accordance with legislation current at the date this schedule was produced. $13, Division 43 Capital Works Deductions on Building Capital works deductions are the allowance on the building, and any applicable structural improvements in accordance with Division 43 of the Income Tax Assessment Act Where detailed construction costs have not been provided to us, these costs have been estimated using the construction cost of similar buildings, of a similar quality, constructed around the time of this building. $68, Balance of Capital Expenditure This represents the balance of all items that do not qualify for capital works deductions, or plant and equipment decline in value. In accordance with ATO guidelines, construction expenditure that cannot be claimed include; Land expenditure Cost of demolition/clearing land prior to construction Earthworks not integral to the construction of the building Soft landscaping $523, Total Capital Expenditure $605, Depreciation Report Sample Page 4 of 11

6 2.2 Capital Expenditure Deductions The table below outlines the capital expenditure deduction for the building costs on this property, and any applicable structural improvements in accordance with Division 43 of the Income Tax Assessment Act The deduction rate and values below will be used in both the diminishing value and prime cost method estimates in the following sections. Capital Deduction Type Construction Date Capital Works Deductions (Building & Structural Improvement Costs) Historical Opening Construction Deduction Annual Value Cost Rate Deduction 03/04/2017 Total Capital Deduction for 88 Days Adjustable Value 30/06/2017 Construction 01/01/1970 N/A N/A N/A N/A N/A N/A Renovations 01/02/2017 $68, % $1, $68, $ $67, Grand Total $68, $1, $68, $ $67, Depreciation Report Sample Page 5 of 11

7 SECTION 3 DIMINISHING VALUE METHOD 3.1 Diminishing Value Summary The summary table below outlines the amount that can be claimed each financial year using the Diminishing Value method of depreciating assets, based on the estimates and calculations outlined in this report. Assets that cost $1,000 or less can be depreciated using the low value pool. Each asset in the pool attracts a decline in value of 18.75% in the year it was acquired, and 37.5% for each subsequent year. When an asset with a cost greater than $1,000 has its adjusted depreciable value fall to below $1,000 they are added to the Low Value Pool, and depreciated accordingly. This mechanism can only be utilised when using the Diminishing Value method. Assets that cost $300 or less can be immediately written off (depreciated 100%) in the tax year they were acquired, so long as the asset is used mainly for the purposes of producing assessable income, and the asset is not part of a set of assets. Ownership Year Tax Year Immediate Deduction Low Value Pooling Diminishing Value Capital Expenditure Total Annual Deduction Year 1 03/04/ $2, $ $ $ $3, Year $ $ $1, $3, Year $ $ $1, $3, Year $ $ $1, $2, Year $ $ $1, $2, Year $ $ $1, $2, Year $82.46 $ $1, $2, Year $51.54 $ $1, $2, Year $32.21 $ $1, $2, Year $20.13 $ $1, $2, Year $12.58 $ $1, $2, Year $7.86 $ $1, $2, Year $4.92 $ $1, $1, Year $3.07 $ $1, $1, Year $ $ $1, $2, Year $ $ $1, $2, Year $ $ $1, $1, Year $ $1, $2, Year $ $1, $1, Year $ $1, $1, Year $ $1, $1, Year $67.04 $1, $1, Year $41.90 $1, $1, Year $26.19 $1, $1, Year $16.37 $1, $1, Year $10.23 $1, $1, Year $6.39 $1, $1, Year $4.00 $1, $1, Year $2.50 $1, $1, Year $1.56 $1, $1, Year $0.98 $1, $1, Year $0.61 $1, $1, Year $0.38 $1, $1, Year $0.24 $1, $1, Year $0.15 $1, $1, Year $0.09 $1, $1, Year $0.06 $1, $1, Year $0.04 $1, $1, Year $0.02 $1, $1, Year $0.01 $1, $1, Total Deductions $2, $4, $7, $67, $80, Depreciation Report Sample Page 6 of 11

8 3.2 Diminishing Value Detail Years 1 to 5 Depreciable Asset Base Value DVM Rate Year 1 88 Days Year 2 Year 3 Year 4 Year 5 GENERAL ASSETS Evaporative Coolers - Fixed $5, % $ $ $ $ $ Heaters - Fixed - Gas Ducted $3, % $88.00 $ $ $ $ Heaters - Fixed - Gas Other $ % $ Window Blinds - Internal $1, % $1, BATHROOM ASSETS Exhaust Fans $ % $ FIRE CONTROL ASSETS Alarms - Smoke $ % $ KITCHEN ASSETS Dishwashers $ % $28.25 $ $ $87.41 $54.63 Ovens $ % $33.45 $ $ $ $64.69 Rangehoods $ % $ Stoves $ % $14.92 $ $73.85 $46.15 $28.85 OUTDOOR ASSETS Garden Sheds - Freestanding $ % $32.55 $ $ $ $62.94 Grand Total $13, $2, $1, $1, $1, $ Depreciation Report Sample Page 7 of 11

9 SECTION 4 PRIME COST METHOD 4.1 Prime Cost Summary The summary table below outlines the amount that can be claimed each financial year using the Prime Cost method of depreciating assets, based on the estimates and calculations outlined in this report. Assets that cost $300 or less can be immediately written off (depreciated 100%) in the tax year they were acquired, so long as the asset is used mainly for the purposes of producing assessable income, and the asset is not part of a set of assets. Ownership Year Tax Year Immediate Deduction Prime Cost Capital Expenditure Total Annual Deduction Year 1 03/04/ $2, $ $ $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $ $1, $2, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Year $1, $1, Total Deductions $2, $11, $67, $80, Depreciation Report Sample Page 8 of 11

10 4.2 Prime Cost Detail Years 1 to 5 Depreciable Asset Base Value Prime Cost Rate Year 1 88 Days Year 2 Year 3 Year 4 Year 5 GENERAL ASSETS Evaporative Coolers - Fixed $5, % $63.29 $ $ $ $ Heaters - Fixed - Gas Ducted $3, % $44.00 $ $ $ $ Heaters - Fixed - Gas Other $ % $ Window Blinds - Internal $1, % $1, BATHROOM ASSETS Exhaust Fans $ % $ FIRE CONTROL ASSETS Alarms - Smoke $ % $ KITCHEN ASSETS Dishwashers $ % $15.07 $62.50 $62.50 $62.50 $62.50 Ovens $ % $14.81 $61.42 $61.42 $61.42 $61.42 Rangehoods $ % $ Stoves $ % $6.60 $27.39 $27.39 $27.39 $27.39 OUTDOOR ASSETS Garden Sheds - Freestanding $ % $11.63 $48.24 $48.24 $48.24 $48.24 Grand Total $13, $2, $ $ $ $ Depreciation Report Sample Page 9 of 11

11 Accumulative Claim ($) Yearly Claim ($) SECTION 5 GRAPHICAL REPRESENTATION The graphical representations below are comparisons between the Diminishing Value and Prime Cost methods of depreciation for this property, to assist in making a decision on which method best suits your taxation profile, based on the estimates and assumptions outlined in this report. 5.1 Yearly Claims Diminishing Value vs. Prime Cost $4,000 $3,500 $3,000 Diminishing Value Prime Cost $2,500 $2,000 $1,500 $1,000 $500 $0 Financial Year 5.2 Accumulative Claims Diminishing Value vs. Prime Cost $90,000 $80,000 $70,000 Diminishing Value Prime Cost $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Financial Year Depreciation Report Sample Page 10 of 11

12 SECTION 6 - TERMS & CONDITIONS The following Terms & Conditions for the provision of our services, including the supply of this report form part of the agreement between the client and Correct Inspections. All calculations used in this report are estimates and assumptions only, except where specific information has been provided by the client. Correct Inspections does not provide any general or specific taxation advice, and supplies this report as information outlining the amounts that may be claimed each financial year, based on the estimates and assumptions detailed within this report. All decisions and advice regarding your general and/or specific taxation situation should be provided by an appropriately qualified and experienced taxation professional. This report has been prepared for the sole purpose of depreciation that may be claimed by the owner, and will become void if the property is sold. It must not be used or relied upon for any other purpose. This report may not be sold or provided to any other person without our express written permission, unless the client is authorised to do so by Legislation. If we give our permission it may be subject to conditions such as payment of a further fee by the other person and agreement from the other person to comply with this clause. However, we may sell the report to any other person although there is no obligation for us to do so. You release us from any and all claims, actions, proceedings, judgments, damages, losses, interest, costs and expenses of whatever nature that the person may have at any time hereafter arising from the unauthorised provision or sale of the report by you to a person without our express written permission. You indemnify us in respect of any and all liability, including all claims, actions, proceedings, judgments, damages, losses, interest, costs and expenses of any nature, which may be incurred by, brought, made or recovered against us arising directly or indirectly from the unauthorised provision or sale of the report by you to a person without our permission. All statutory or implied conditions and warranties are excluded to the extent permitted by law. To the extent permitted by law, any and all liability, including all claims, actions, proceedings, judgments, damages, losses, interest, costs and expenses of any nature, which may be incurred by, brought, made or recovered against us arising directly or indirectly from the use or reliance upon this document is limited to the following; a. Supplying the report again; or b. Paying the cost of having the Report supplied again. If the Report fails to conform in any material respect to the terms and conditions set out herein, then: a. Correct Inspections is not liable unless the Client notifies Us of the failure within 28 days after the date of delivery of the Report; and b. The liability of Correct Inspections is, in any case, limited to the cost of providing this depreciation schedule, and Correct Inspections is not liable for any consequential damage. The provisions of this liability clause is subject to the provision of any statutory condition or warranty that cannot legally be excluded. This report, its layout and contents are the copyright of Correct Inspections. Any person, party or entity, other than the party named as the client on this report hereof that uses or relies upon this report without our expressed written permission is in breach of this copyright. This report has been prepared for the exclusive use of the party named as the client on this report hereof. Any other person, party or entity that uses or relies upon this report without our written consent does so at their own risk and we accept no responsibility for any loss, damage or expense incurred by them arising from its use whatsoever. This report cannot be reproduced in part; it must only be done so in full. ---End of Report--- Depreciation Report Sample Page 11 of 11

Residential Property Deduction Schedule

Residential Property Deduction Schedule Residential Deduction Schedule Page 1 Schedule No. 6881 / Ref No. R1362 PH 07 3268 5170 Residential Deduction Schedule Residential Deduction Summary Settlement Date 20/08/2010 Purchase Price $855,000.00