The client’s Name and Address have been altered for privacy.

Our client, David, came to Washington Brown after recently converting a property into a boarding house.

The 237sqm house was purchased in 2021 for $400,000, and David undertook some renovations to convert the property into a boarding house.

As well as some structural works (such as additional ensuites and doors), David furnished the property and purchased new kitchen equipment.

As this property is deemed Commercial, David can claim deductions on the structural elements (Building Allowance / DIV 43), the existing fixtures/fittings (Plant & Equipment / DIV 40) and his new purchases.

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

By forwarding the depreciation schedule files to his accountant, David benefited from a first-year tax depreciation deduction of over $25,000. The schedule/report detailed over $105,000 of deductions over the entire 40-year period.

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

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