What is a depreciation schedule?
A depreciation schedule is a report supplied by a quanitity surveyor after inspection of a investment property. The report itemises fixtures and fittings that can be depreciated and estimates their value. It also estimates construction costs if these are not known.
What is the report used for?
A depreciation schedule are prepared for the sole purpose of reducing investment property owners taxable income. The report becomes void once the investment property is sold.
What is a depreciating assest?
A depreciating assest as defined in the income tax assesment ACT (ITAA) 1997 section 40-30. (1) is an asset that has a reasonably effective life and can be expected to decline in value over time.
The calculation of the amount of a deduction allowed with respect to a depreciating assest in part depends upon the cost of that asset. The cost has been determined by the amount you have paid for the depreciating asset
What is the diminshing Value method of depreciation?
This method depreciates items more quickly up front. This method recognises the fact that most plant and equipment items tend to lose a higher portion of value earlier on.
What is the prime cost method of depreciation?
This method evenly spreads out the depreciation you can claim on plant and equipment items.
What is the building or capital works allowance?
This deduction relates to the construction costs of the building such as ovens, dishwashers, carpets and blinds. The plant equipment allowances comprise a number of categories which are claimed at different percentages over their effective life.
When does the $300 immediate write off apply?
You can claim immediate deductions ( i.e 100% of the cost price) for items costing $300 or less.
What are design and professional fees?
These fees include architect fees, engineering costs and any other design fees involved in creating a property.
What are builders preliminaries?
These costs relate to items such as scaffolding, materials, handling insurances and labour costs.
What if i co-own my property?
Where depreciating assets are co owned, the individuals interest(share) in the asset is applicable. Each co-owner therefore must treat their depreciating asset ( their interest in the underlying asset) in accordance with their own tax profile