Tax Training School Lesson 4 - Depreciating Assets Tax return examples Example 1 - Rodney Phillip Gray is a Barrier Fence Patrol Officer for North Qld Patrols. As Rodney travels a fair bit to different outback stations therefore can only be contacted on 0441 658 332 or via his email: rodney.gray@nqp.com.au. He was born on 26/12/1976 and lives with his wife Sasha Jane Gray (10/12/1969) and his 2 children. He is requesting that any refund he may receive is sent via electronic funds transfer. Rodney and Sasha hold a joint bank account with NAB that has paid $754 in interest and his bank account details are as follows: Account name: Rodney Gray BSB number: 083-832 Account number: 855498663 Rodney has had the following expenses during the financial year: Fee for preparation of last year s tax return $225 Hi Vis work clothes $162 Steel Capped Boots $215 Mosquito Net for when at camps $35 Sun Hat for when out inspecting sites $150 Sunscreen $25 Insect Repellent $11.75 Sunglasses (100% for work) $198 Pliers, screwdrivers and other small tools under $300 $991.35 Portable LED Light (on stand) $298 Ink x 2 $57 each Copy Paper $8 Diary $16.55 Pens, Highlighters etc $12.45 Mobile $59mth with 60% for work Internet $120mth with 20% for work Rodney spends at least 2 hours a weeks at home preparing reports. He also has Work related Equipment that has been previously depreciated see schedule. During the year Rodney purchased a Telstra Dave 4G Satellite phone (purchased 01/07/2015) costing $897. Rodney also has Work related equipment that has been previously depreciated - see schedule. Page 1 of 5
Example 2 - Fay Alice Butler is an article writer for a local magazine and works primarily from home. She has kept a diary record showing that she spends an average of 35 hours per week over a 48 week year working from home. Fay has the following expenses that need to be depreciated: Asset Cost Private Use OWDV Effective Life Computer $1,256.00 20% $628.00 4 years Office Chair $1,005.00 0 $804.00 10 years Bookshelves $1,830.00 0 $915.00 10 years Office Desk $2,340 0 $1,317.00 20 years Printer $1,110 45% $650.00 5 years In addition to that, she has the following expenses: Printing and stationery $144 Telephone and fax calls $913 for business Registration in writers guild $265. Fay sold her computer during the year on the 1st September for $250. She replaced it with a new one she bought on the 19th September of this year for $2,980. Both the old computer and the new computer are Desktop Computers and have always been used 80% for business use. She donates $20 per month to Cancer Council and has lived at the same address for the past five years. Fay would like any refund to be put into her bank account: Account name: Fay Butler BSB number: 034-003 Account number: 248842248 The fee she paid to an agent last year for preparing her tax return was $99. Fay's contact information is as follows: DOB: - 13/11/1978 Phone: - (07) 3286 1934 Mobile: - 0419 167 111 Email: - fab@hotmail.com Page 2 of 5
Example 3 - Colin Westwood( DOB: 01/01/1962) is a Mathematics teacher at a local secondary school. He has lived at the same address for the last 5 years -78 Redgum Street, Morayfield QLD 4506. He can be contacted on either 0422 669 347 or colinwestward62@optusnet.com. Colin has the following expenses that have been previously depreciated: Asset Cost Private Use OWDV Effective Life Computer $1,600.00 45% $800.00 4 years Printer $450.00 45% $270.00 5 years He has also bought the following: Scientific Calculator $425 (1/7/15) Teaching texts $425 (not a set and deemed 'professional') Colin would like to use Low Value Pool for the calculator and new printer. The computer and printer were stolen on the 1/5/16 Colin received a payment from the insurance company of $1,200 for the computer and $400 for the printer. On the 2/5/16, Colin purchased a new Dell Laptop for $1,600 and a Canon colour printer for $399. These were also used for private purposes 45% of the time. Colin does not wear a uniform but has spent $30 on sunscreen for outdoor duty during the school day. He has donated $50 to the Mouth and Foot Painting Association in return for some painted cards and a calendar. Account name: Colin Westwood Account number: 65987321 Page 3 of 5
Example 4 - Ms Maria Jane Lancaster born on the 15/02/1974, is a single mum who has worked as a relief secretary for an office management company. She has three children at school for which she receives Family Tax Benefits. Maria can be contacted on (07) 3203 6684, mobile: 0404 988 662 or email: maria.j.landcaster@iinet.com.au Account name: Maria Landcaster Account number: 556698562 Maria paid QTAX $100 plus a $28 processing fee to do her tax last year. She was depreciating her computer and a printer last year and would like to do so again but with private use of 50% for each. Computer closing value last financial year - $1,256 (4 years) Printer closing value last financial year - $239 (5 years). Maria has deductions as follows: Black court shoes $145 (Employment agreement) Stationery $55 USB memory stick $25 Paper for printer $23 Ink cartridges $79 Maria does not have a compulsory uniform but her employment agreement states that she must wear corporate clothing. Dry cleaning of work clothing - $189. Maria catches the train to work but had to use a taxi to deliver documents for her employer. Train fares totalled - $275 and Taxi fares totalled- $139. Page 4 of 5
Example 5 - Michelle Jane Turner born on the 13/06/1972 worked for Just cuts for 8 months before receiving the amount of $4,680 Parenting Payment Single (PPS) from Centrelink. Michelles contact details are as follows: home: (07) 3204 9965 mobile 0417 554 862 and email address: theturners@gmail.com. Michelle has accumulated bank interest in her Suncorp account of $67. She has also made gifts to charities for the full financial year: $30 a month to Mater Prize home tickets and $20 a month to World Vision in which she has receipts for. During the time Michelle worked at Just Cuts she had incurred the following expenses: Hairdresser Scissors $62 Hair Dryer $349 bought on the 1/7/2015 Hair accessories for clients $45 3 x logoed shirts $35 each While being employed Michelle studied Administration at Tafe and had the following expenses: Tafe Fees $650 Textbooks $235 Stationery $60 Michelle would like any refund to go into her bank account: Account name: Michelle Turner Account number: 65987 Page 5 of 5