How are the effective lives’ for Plant & Equipment elements determined?
The ATO defines the effective life of a depreciating asset is how long it can be used by any entity for a taxable purpose, or for the purpose of producing Read More…
What is the difference between a valuation and a depreciation schedule?
A property valuation is the price at which a property would trade in a competitive open market. A depreciation schedule is different, as we work out how much the property Read More…
How much depreciation do I get?
This is a common question; thankfully most people understand when we advise them that it is very difficult to provide an estimate without actually conducting the inspection. As a rule, Read More…
There are two method displayed on my report – Prime Cost and Diminishing Value – How do these differ?
The Diminishing Value Method assumes that the value of a depreciating asset decreases more in the early years of its effective life. Items to the value of $300 or less Read More…
What costs cannot be included in my depreciation schedule?
The cost of land on which the rental property is built, the expenditure of clearing the land prior to construction and permanent earthworks cannot be included in your depreciation schedule. Read More…
Can I claim for my own labour?
In short no, it is an ATO ruling that you can only claim for the money you have actually spent and are able to substantiate with a receipt.