Property Depreciation Schedules - The New reality

The Small Business Bonanza!

We often get asked to value not only buildings for depreciation purposes but also the plant and equipment inside it as well.

(NOTE: Deductions for plant and equipment items may only apply to commercial properties, brand new properties, if you bought the property prior to May 9, 2017, or some other exceptions – Read about the Budget changes here).

A client of ours recently purchased the Leasehold of a motel in Central Queensland, the couple now run the hotel. They don’t own the building as such, but they do own all the loose stuff that is used to run the motel.

This includes the beds, the clocks & the linen etc. Depreciation Calculator

Now, because the contract only listed purchase price and didn’t have a breakdown of what they paid for each item – they got us involved to prepare a depreciation schedule for them.

I was AMAZED at the results.

The Leasehold contract was approximately $400,000. We valued the plant and equipment at approximately $275,000.

Guess what – their 1st year deduction was around $250,000!!!

Small Business Asset Bonanza!
How? Well it all comes down to the new Small Business Assets depreciation regime.

Provided your small business turns over less them $2m dollars, per annum, you can claim any individual item that cost under $6,500 each immediately.

Now there aren’t many items in a hotel/motel that cost more than $6,500. So pretty much all of it was written off immediately.

One HAPPY client.

Work out how much you save using our free property depreciation calculator or make it happen and get an obligation free quote for a depreciation schedule now.

About Tyron Hyde

Tyron Hyde is a director of quantity surveying firm Washington Brown. He is regarded as one of the industry's leading experts in property tax depreciation, is regularly quoted in the media & asked to speak at conferences. -