You Guide to Capital Gains & Depreciation Schedule Examples

Depreciating asset Effective life in years Carpets – in commercial office buildings 8 – in ten-pin bowling centres 4 -Computers -generally 4 -laptops 3 Curtains and drapes 6 Fire extinguishers 15 Hot water installations for commercial office buildings (excluding commercial boilers and piping)15 Lawn mower- motor 62/3 – self-propeled  5 Library (professional) 10 Motor vehicles [...]

Capital gain on depreciating asset Larry purchased a truck in August 2006 for $10,000 and sold it in June 2008 for $8,000. He used the truck 10% of the time for private purposes. The decline in value of the truck under the UCA system up to the date of sale was $2,000. Therefore, the sum [...]

Capital gains or capital losses only arise from the disposal (ie. sale) of a depreciating asset. A gain or loss will only arise to the extent that you have used the asset for a non-taxable purpose (eg. Private purposes). Capital gains and losses can be calculated using the Guide to Depreciable Assets from the Australian [...]

All types of income producing properties have substantial taxation benefits available to be claimed as a tax credit. Many property investors are missing out on thousands of dollars in tax depreciation deductions. Both new and old properties will attract some depreciation benefit that the owner is able to claim as a tax credit. A common [...]

The depreciation benefit to every investor will vary. The following example has been provided as an approximate guide, using the diminishing value of depreciation. Property: A two bedroom unit purchased for $400,000 Income: Rented for $385 per week Total income of approximately $20,000 per year Expenses: Interest, rates and management expenses $32,000 per year Scenario [...]

1. If my property was built before 1985, is it too old? No. It is worth noting that: ? Your investment property does not have to be new: Both new and old properties will attract some depreciation deductions. A common myth is that older properties will attract no claim. ? You can adjust previous year’s [...]

In order to maximise the tax benefit your investment property will attract, you will require the services of a recognised Quantity Surveyor with specific property tax depreciation skills and experience. To ensure you claim all your entitled depreciation deductions a site inspection will need to be carried out as this will accurately identify all items [...]

In terms of depreciation, what should you consider when making an investment property purchase decision? If you are looking to purchase an investment property, it is worthwhile asking yourself a number of questions. While many investors consider location, purchase price and tenanting ability when contemplating an investment property purchase, they often overlook depreciation as an [...]

Depreciation is sadly often missed by investors, but it is a legitimate tax deduction. The Tax office admits that 52% of investors don’t claim what they are legally entitled to. Don’t let it happen to you! There is no cash outlay required to legitimately claim a tax deduction, and you can claim depreciation even if [...]