All Topics / Legal & Accounting / Depreciation Schedule

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  • Profile photo of SellingSelling
    Member
    @selling
    Join Date: 2005
    Post Count: 11

    Hi guys,

    I haev read in many threads about the Depreciation Schedule for a property and I was wondering if anyone could share an example for me?

    Any one has a spreadsheet with the schedule or something?

    Thanks in advanced.

    Mario

    Profile photo of ez-rentez-rent
    Member
    @ez-rent
    Join Date: 2003
    Post Count: 139

    The ATO has a “Guide to depreciation” which explains it.. and any accountant’s tax software creates one for you as well..

    If you are unsure of a depreciation schedule, first its best to understand what depreciation is. I recommend any new or would be property investors to research this and if unsure, solicit a company to produce one for you as many people miss out on legitimate deductions in this area. They are called a Quantity Surveyors Report.

    A spreadsheet is ideal and I am certain that someone will provide you with a good one. EZ-Rent works out depreciation for you as well.

    In effect it is a list of items in your property (fittings, carpets, air conditioners, curtains, etc) that lose value over time due to normal use and wear and tear.

    They are legitimate items which you can claim as an expense of your property investment, but you cannot simply claim the cost in one year. The ATO make you claim it over the lifetime of the depreciable item.

    Whats the lifetime? The ATO produces guidelines, but also allows you some flexibility in determining this..

    Take an oven for an example. A realistic time frame for an Oven’s lifetime may be 10 years. If that oven cost you $1000, you can only claim a certain percentage of its cost in the first year, second year, etc.

    Now there are different ways to depreciate items (prime cost vs diminishing value + low value pool, etc) and your property itself (the dwelling) is also depreciatble too as its the land that goes up in value (generally the value of the dwelling itself goes down over time)

    Hope that helps..

    P

    EZ-Rent. The freeware tax and cashflow simulator for Australian property investors. Version 2.5 out now!
    http://www.ez-rent.com

    Profile photo of depreciatordepreciator
    Member
    @depreciator
    Join Date: 2003
    Post Count: 541

    Send me an e-mail, Mario, and I’ll send you a sample schedule.
    Scott

    Tax Depreciation Schedules
    Australia wide service
    1300 660033
    [email protected]
    http://www.depreciator.com.au

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