Depreciation schedules presentation
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Transcript of Depreciation schedules presentation
![Page 1: Depreciation schedules presentation](https://reader036.fdocuments.in/reader036/viewer/2022062418/55683172d8b42ab7198b50d6/html5/thumbnails/1.jpg)
How to save tax on residential
investment properties
![Page 2: Depreciation schedules presentation](https://reader036.fdocuments.in/reader036/viewer/2022062418/55683172d8b42ab7198b50d6/html5/thumbnails/2.jpg)
About Us
• Opteon Victoria is Victoria’s largest independent property valuation and advisory enterprise.
• Combining the resources and expertise of Landlink-Opteon and Market Line-Opteon with a network of 14 offices throughout Victoria, employing approximately 200 professional staff.
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The best kept secret that 65%
of investors are unaware of
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ATO approved
Depreciation Schedules
![Page 5: Depreciation schedules presentation](https://reader036.fdocuments.in/reader036/viewer/2022062418/55683172d8b42ab7198b50d6/html5/thumbnails/5.jpg)
Why should you be interested?•They will reduce your clients’ tax
bills.
•Your knowledge will impress your clients.
•Your clients will love you.
•Value add to your own client services
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Who should have a depreciation schedule?
Everyone who owns an
INVESTMENT
Property!
![Page 7: Depreciation schedules presentation](https://reader036.fdocuments.in/reader036/viewer/2022062418/55683172d8b42ab7198b50d6/html5/thumbnails/7.jpg)
What are they?
• A tax deduction for the ageing of the buildings and external improvements.
• A tax deduction for the ageing of the
chattels, plant and equipment.
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Relevant Dates- Residential
• Buildings after July 1985
• External work after Feb 1992
• Chattels - a change of ownership
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What is assessed?
• The buildings – dwelling, garage, carport, sheds, etc
• Other fixed structures – paving, fencing, pools, retaining walls, etc
• The chattels & plant – carpet, blinds, appliances, etc
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Two types of depreciation
1.Prime cost method
2.Diminishing value method
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Example 1- 2008 Townhouse• Construction
cost $338,000
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The tax deduction1. The total tax deduction after 5
years$50,986
2. The total deduction after 10 years
$95,863
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Annual Tax Allowance- Diminishing Value Method
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Example 2- Kavanagh Street, Southbank
• An average 2 bedroom apartment 70 sqm.
• Sale price $344,000 April 2007
• Common property includes basement car parking, large foyer area, lift lobbies, a swimming pool, small gym and a paved BBQ area
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The tax deduction1. The total tax deduction after 5
years $22,480
2. The total deduction after 10 years
$40,625
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Example 3- Bourke Street, Docklands• A good 2 bedroom
apartment of 69 sqm. Erected 2008
• Sale price $ 482,000 in March 2009
• Common property includes basement car parking, lift lobbies, and small paved terrace
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The tax deduction
1. The total tax deduction after 5 years
$36,996
2. The total deduction after 10 years
$62,159
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Annual Tax Allowance- Diminishing Value Method
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Remember…
• Pretty much everything except the plants in the yard are included.
• Every building erected or renovated after 1985 is eligible.
• Chattels are revalued every time the property is sold.
• We provide the two types of depreciation.
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Can claims be back dated?
YES
Two years within the present tax year or more with a variation.
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What are the 3 great benefits for you?
1. These will reduce your client’s tax bill
2. Your knowledge will impress your clients
3. Your clients will love you.
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The cost of this investment?
• Residential fee is $550 incl GST
Fully tax deductable and lasts for 20 yearsApartments with substantial common property
an extra $100 + GST
If fully furnished - an extra $100 + GST
• Commercial/ Industrial properties - quote
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222a / 757 Bourke St, Docklands.
Stuart Bridgman Director – Property Services
Geoff PinneyDepreciations Coordinator
Ph: 1300 786 022Fax: 03 5223 2309
E-mail: depreciation @ opteonvictoria.com.au