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All business owners and property investors need a tax depreciation report on their depreciating assets

Why

Business owners who purchase assets or lease assets with the intention to purchase those assets later can deduct the full cost of most plant assets from their taxable incomes over 6 to 10 years thus claiming the full after tax return cash benefits for the life of those assetS. Each business asset depreciates from its installation date. My reports calculate the depreciation of each business asset from its installation date including tenancy fit out and show yearly total deductions in either a 40 year Diminishing Value schedule or a 40 year Prime Cost schedule for all of the assets owned or leased by that business.

 

Depreciating assets covered under uniform capital allowances include: 

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PLANT

SOFtWARE

 Mining & quarrying    

 Intellectual property

 FORESTRY ROADS & TIMBER MILL BUILDINGS AND SPECTRUM LICENCES

Any capital works in the tenancy fitout owned by the business is also a depreciating asset and is claimed under Division 43 ITAA.

If there is more than one owner of the business or property asset each owner’s interest in the asset is treated as a depreciating asset & it’s eligibility for inclusion in the Low-Value Pool or as a $300 item or less is based on the value of each owner’s interest in the asset

GST Input tax credits: If there is a creditable acquisition or creditable importation of a depreciating asset the base cost of the asset is reduced by any input tax credit you are entitled to claim for the acquisition or importation. If there is an input tax credit claimable in the second element of cost to bring the asset to its present condition & location (such as the cost of improving the asset) the base cost of the depreciating asset is reduced by this tax credit amount.

Intangible assets in general are not depreciating assets except for the following assets if they are not trading stock:

In-house software for which you have incurred expenditure to develop or acquire, or purchase a right or licence to use for income production.

Certain items of intellectual property such as standards, innovation & petty patents,  registered designs, copyright (except copyright in a film) & licences of these.

a mining,quarrying or prospecting right relating to mining operations to obtain other than petroleum or quarry materials

 

       petroleum

 

       quarry materials

 

   spectrum licences 

       datacasting transmitter licences

       and telecommunications site access rights

I can depreciate any of these intangible assets for you according to the effective lives or laws pertaining to the calculation of effective lives for each of these intangible assets under current legislation provided by the ATO

PROPERTY Depreciation

For property investors eligible depreciating assets that cost less than $300 are deducted at their full cost of the interest in the asset in the year of purchase.

newly built buildings or substantially renovated buildings in which all or substantially all the building is removed or replaced which had contract dates after 7.30pm 9th may are eligible for plant depreciation providing no one was eligible to claim that plant depreciation earlier and either you acquired it new before anyone had occupied it or you acquired it within 6 months of construction completion.

Deductions for capital works include buildings, structural extensions to buildings, renovations, & structural improvements eg. gazebos, carports, fences, driveways, & retaining walls which were constructed within eligible dates. Expenditure on clearing land prior to construction & earthworks that are permanent but not integral to the installation or construction of the structure are construction expenditures which cannot be claimed.

If the cost of a depreciating asset is taken at market value say in a business premises purchase with eligible plant included which constitutes a creditable acquisition then the market value of the plant assets would be reduced by any input tax credit percentage of the total purchase cost you are entitled to claim on the purchase of that business premise.