Property Depreciation Schedules - The New reality

Case Study – Second Hand House (Built After 1987)

Client Name and Unit Number have been altered for privacy.

 

Marie came to Washington Brown looking to maximise her tax depreciation deductions, having purchased a second-hand investment property in 2018.

The house was originally built in 2000 and was purchased for $1,200,000 in 2018.

The two storey house consisted of 4 bedrooms, 2 bathrooms and a double garage, with a total internal area of 304sqm.

As Marie purchased the house after May 9th, 2017 and the property was not brand new, she was not able to claim deductions for the fixtures/fittings (Plant & Equipment / DIV 40).

Marie’s report from Washington Brown allowed her to claim the yearly deductions displayed below. The first year figures are specific to Marie’s settlement date in mid-August (slightly less than full financial years’ ownership).

By providing the Washington Brown depreciation schedule files to her accountant, Marie was able to claim over $8000 in her 2019/2020 tax return. In addition, she was also able to amend her 2018/2019 tax return to claim an extra $7,396. This gave her a total deduction of over $15,000.

Note: Please scroll across on mobile to view full deductions.

Financial Year Capital Works Deductions Plant & Equipment Low Value Pool Assets Amount Claimable
2018 / 2019 $7,396 $0 $0 $7,396
2019 / 2020 $8,436 $0 $0 $8,436
2020 / 2021 $8,436 $0 $0 $8,436
2021 / 2022 $8,436 $0 $0 $8,436
2022 / 2023 $8,436 $0 $0 $8,436

To view the full depreciation schedule, including an individual asset break up and Prime Cost deductions, you can download a copy here.

If you would like to get your own depreciation schedule, or find out how much you could claim, get a quote here.

Case Study – Brand New Apartment

Client Name and Unit Number have been altered for privacy.

 

Having recently settled on an off-the-plan apartment in Clayton, Victoria, Paul’s accountant suggested he contact Washington Brown to maximise his tax deductions.

The 74sqm, 2 bedroom, 2 bathroom apartment was purchased for $559,000 in 2020.

Floor Plan of Paul’s 2 Bedroom Apartment

As Paul was the first owner and had never occupied the property himself, he was eligible to claim deductions on both the structural elements (Building Allowance / DIV 43) and the fixtures/fittings (Plant & Equipment / DIV 40).

Washington Brown was able to achieve the below, ATO-compliant deductions for Paul. As he settled in August, the first years’ figures show the maximum deductions available based on 11 months’ ownership in that financial year.

By forwarding the depreciation schedule files to his accountant, Paul benefited from a first year tax depreciation deduction of almost $17,000. The schedule/report detailed over $300,000 worth of deduction over the full 40 year period.

Note: Please scroll across on mobile to view full deductions.

Financial Year Plant & Equipment Low Value Pool Assets Capital Works Deductions Amount Claimable
2020 / 2021 $9,674 $1,109 $6,113 $16,895
2021 / 2022 $4,095 $1,802 $6,680 $12,577
2022 / 2023 $3,322 $1,126 $6,680 $11,128
2023 / 2024 $2,731 $704 $6,680 $10,115
2024 / 2025 $2,271 $440 $6,680 $9,391

To view the full depreciation schedule, including an individual asset break up and Prime Cost deductions, you can download a copy here.

If you would like to get your own depreciation schedule, or find out how much you could claim, get a quote here.

Case Study – UK Townhouse (Built After 1987 – Lived in until 2019)

Client Name and Unit Number have been altered for privacy.

 

Matt came to Washington Brown looking to maximise his tax depreciation deductions. Having recently moved to Australia from the UK, Matt rented out the family home in England when they left.

The house was originally built in 2005 and was purchased for £400,000 in 2010.

The two storey house consisted of 3 bedrooms and 2 bathrooms, with a total internal area of 120sqm.

 

UK Townhouse Depreciation

As the house was only made available for rent after May 9th, 2017, he was not able to claim deductions for the fixtures/fittings (Plant & Equipment / DIV 40).

Matt was, however, eligible to claim deductions on the structural elements of the property (Building Allowance / DIV 43). This included the original building, painting work by a previous owner, as well as the new kitchen installed in 2015.

Matt’s report from Washington Brown allowed him to claim the yearly deductions displayed below. The first year figures are specific to the date the property was first made available for rent in August 2019 (slightly less than a full financial years’ ownership).

By providing the Washington Brown depreciation schedule files to his accountant, Matt was able to claim over $4000 in his 2019/2020 tax return. Deductions of over $4000 will continue until 2045, or until Matt moves back in, or sells the property.

Note: Please scroll across on mobile to view full deductions.

Financial Year Capital Works Deductions Plant & Equipment Low Value Pool Assets Amount Claimable
2019 / 2020 $4,027 $0 $0 $4,027
2020 / 2021 $4,400 $0 $0 $4,400
2021 / 2022 $4,400 $0 $0 $4,400
2022 / 2023 $4,400 $0 $0 $4,400
2023 / 2024 $4,400 $0 $0 $4,400

To view the full depreciation schedule, including an individual asset break up and Prime Cost deductions, you can download a copy here.

If you would like to get your own depreciation schedule, or find out how much you could claim, get a quote here.

IT’S OFFICIAL

Since our beginning, well over 40 years ago now, Washington Brown has always placed as much importance on achieving the maximum ATO-Compliant deductions for our clients as we have on ensuring the highest levels of Customer Service and Satisfaction.

With these aspects being at the core of the business’ values, we are understandably both proud and excited when we receive positive feedback.

As such, we wanted share the following three reasons why Washington Brown is the right choice when it comes to your Property Tax Depreciation requirements:

  1. Independently voted TAX DEPRECIATION SPECIALIST OF THE YEAR 2019
  2. Over 200 5-Star Google User Review Ratings
  3. A Net Promoter Customer Satisfaction Rating average of ‘World Class’

1. Independently voted TAX DEPRECIATION SPECIALIST OF THE YEAR 2019

Property Investors Award

Each year, Your Investment Property magazine organises the detailed analysis of firms across many fields within the Property Investment Industry as part of their Property Investors Awards.

The Awards celebrate successes in property investment industry and seek to establish a benchmark for excellence in the industry, giving investors a point of reference to Australia’s top investment performers.

It is an honour to announce that Washington brown have won the Tax/Depreciation Services category and have been named as TAX DEPRECIATION SPECIALIST OF THE YEAR 2019.

2. Over 200 5-Star Google User Review Ratings

As at March 31, 2020 – We have proudly achieved over 200 5-Star Google User Review Ratings across our offices and maintained our overall average rating of 4.9 out of 5.

We attribute this to our unwavering focus on the customer experience and their satisfaction as well as our dedication in addressing any questions that may have arisen following provision of our clients fully comprehensive and compliant reports.

3. A Net Promoter Customer Satisfaction Rating average of World Class

Every month we survey our clients to request their feedback on our service and performance utilising the internationally recognised Net Promoter Protocol.

We use this this data to evolve and improve our service, our processes and our customer experience. Washington Brown’s average score places us in the “World Class” category ahead of a number of the world’s leading brands. This is something we are very proud of.

A Net Promoter Customer Satisfaction Rating
New Promoter Score Data