Ever wondered what a Tax Depreciation Schedule Example looked like?
This example report indicates what you could expect to receive if you ordered a depreciation schedule for your property (to get a free quote, click here).
From this depreciation schedule sample, you can see that you will be provided with two methods of claiming depreciation on your investment property:
- The diminishing value method of depreciation – fast tracks your deductions, so you claim more in the early years of ownership.
- The prime cost method of depreciation – spreads your depreciation claims out more evenly over the life of the property.
The example depreciation schedule also breaks the construction of a building into two components:
- The building allowance component of the building – which can be claimed at 2.5% per annum; and
- The plant and equipment component of the building – which is claimed at varying rates.
From the depreciation schedule example, you can see the varying rates that the plant and equipment items – like blinds, air conditioning, etc. – are depreciated depending upon the asset’s effective life.
UPDATE: 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.
If you’ve purchased property after May 9, 2017, and want to find out if you’ve been affected by these legislation changes – request a free review of your property by one of our tax depreciation specialists and find out how much you could expect to claim in deductions.
Once all the depreciation calculations on these items are complete, the tax depreciation schedule example clearly shows how much can be claimed using each method into a broken down year-end summary of amounts to be claimed based upon the financial year.
The Australian Taxation Office has identified Quantity Surveyors as the appropriate body to estimate costs where the costs are unknown.