Can you send me your Depreciation Schedule?

Hi just wondering is anyone willing to send me an example of their depreciation schedule or just the numbers and years table.

Need one for a property worth around high 700k range.

Or any value.

I'm gonna put it in excel and add a trend line and see what relationship it is with time. Like is it linear to exponential and roughly what value is claimed..

I'm trying to do my tax return.

If you are willing to help can you please Private message me and I'll send you my email.

Thanks in advance.

or if you are not shy about it can just post here:

e.g.

Year 1 : $9000
Year 2 : $8***
Year 3 :
etc

...

...

Year 20:
 
Depreciation schedules are unique for each property depending on the level of finish, square meterage and construction methods.

Then there are 2 ways to depreciate.

Why don't you spend $300 and get one done?
 
Would highly recommend you put down the $330 or $615 (recommended) needed for a depreciation schedule (tax deductible).

If you've seen a proper one done by the likes of Depreciators or BMT then you wouldn't question paying the money.

It's like trying to save a penny and loose a dollar in the process.
 
Would highly recommend you put down the $330 or $615 (recommended) needed for a depreciation schedule (tax deductible).

If you've seen a proper one done by the likes of Depreciators or BMT then you wouldn't question paying the money.

It's like trying to save a penny and loose a dollar in the process.

Just got quoted from BMT alot more than $330 and $615...

They probably heard my voice (young inexperience guy) so they applied first degree price discrimination.

It's not really "tax deductible" it's taxable income deductible. if it was tax deductible I'd do it no matter how much it costs. being tax deductible just means you get a discount off that is your marginal tax rate.

Thank you for providing me an example. it has a range of price values. I can extrapolate to my price range and work out Plant &
Equipment as well as Division 43 over the years.

If I collect enough data, I can plot all the trends and work backwards to a formula... look at which r^2 value is closest to 1 to determine what trend it is. Looking at the graph it looks like exponential decay.

thanks jamie for linking me the examples.
 
Just got quoted from BMT alot more than $330 and $615...

They probably heard my voice (young inexperience guy) so they applied first degree price discrimination.

It's not really "tax deductible" it's taxable income deductible. if it was tax deductible I'd do it no matter how much it costs. being tax deductible just means you get a discount off that is your marginal tax rate.

Thank you for providing me an example. it has a range of price values. I can extrapolate to my price range and work out Plant &
Equipment as well as Division 43 over the years.

If I collect enough data, I can plot all the trends and work backwards to a formula... look at which r^2 value is closest to 1 to determine what trend it is. Looking at the graph it looks like exponential decay.

thanks jamie for linking me the examples.

No worries.

I like your line of thought - but getting a property schedule drawn up will be money well spent. Especially if you spend the next 20 years under/over estimating your deductions.

Cheers

Jamie
 
Hi just wondering...

I like your nickname, you better be fullylucky, because if you do your tax return with a home-made depreciation schedule you're going to have big problems explaining it if the ATO asks for documentation or audits you :eek:

They won't audit you if you're lucky though :D
 
I like your nickname, you better be fullylucky, because if you do your tax return with a home-made depreciation schedule you're going to have big problems explaining it if the ATO asks for documentation or audits you :eek:

They won't audit you if you're lucky though :D

I find it amusing that it took 7 posts in this thread for someone to mention the legality of it.
 
I find it amusing that it took 7 posts in this thread for someone to mention the legality of it.

Where does it say you can't do it yourself?

I think these days alot of industries do so well to market things it seems like you "must" have a "specialist" to do this and do that.

I'm gonna spend a few hours now doing up the model. Even if I can't do it myself it's still time well spent. I can think of it as due diligence on their work. atleast I have an estimate of what it might be.

Another example of how people spend money they could have saved...: A ton of people have simple as tax returns. like 1 salary. everything is prefilled... yet with all the ads on Ohhh but you'll get your money back faster! and no need to worry big bad ATO will ask you and put you in jail and charge you extra with interest! oh No. All you need to do is pay us a simple small $90 and we'll work super hard to do your complex tax return for you! no need to spend hours calculating we'll do it all for you! :)

Dowdload etax/log into mygov, click prefill. click click. done submit. get your money back. it's not bloody rocket surgery.

here's another example of how we need special highly qualified duel computer monitor installation speciaologists
http://www.smh.com.au/national/publ...mputer-screen-at-the-ato-20141031-11e1q1.html

if you can put different shapes of wooden blocks into different holes you can install a second monitor... it's not rocket surgery.
 
There are two groups of occupations qualified to prepare a depreciation schedule that will hold up to scrutiny - a quantity surveyor and an accountant. On what basis will you determine the depreciation on an item? on several items? on all items? What if you miss a few deductions? What is that worth over the lifetime of the asset? Too smart by half.:confused:
 
Where does it say you can't do it yourself?

Dowdload etax/log into mygov, click prefill. click click. done submit. get your money back. it's not bloody rocket surgery.

if you can put different shapes of wooden blocks into different holes you can install a second monitor... it's not rocket surgery.

If I were the ATO, there's no way I'd believe what you've done is a reasonable basis for claiming a deduction. And what's rocket surgery?
;)
We often get what we go out looking for.

Trouble is that sometimes we know what we save, but often can't define the loss until it's way late.

This could be one of them times

Ta

Rolf

Rolfucius strikes again!
 
I recently had depreciator do a couple of reports for me. It cost less than $1,000 (for several).

By my complex calculations it's worth 1 miss depreciated item, 1/10 of an Ato audit or less than 12 hours of my time.

Personally not worth my time or risk to even bother attempting to do it myself.

Blacky
 
Last edited:
Even an accountant couldnt accurately calculate the construction expenditure for determining the amount eligible for the division 43 allowance. Only a quantity surveyor could do that.

Who says you cant calculate your own Division 43 capital works deduction. The ATO. You might want to read TR 97/25 http://law.ato.gov.au/atolaw/view.htm?DocID=TXR/TR9725/NAT/ATO/00001

At paragraph 23 - 31 it states

23. Subsection 262A(4AJA) of the 1936 Act operates upon a disposal, by way of transfer, of capital works begun after 26 February 1992 and in respect of which deductions have been allowed or are allowable under Divisions 10C or 10D of the 1936 Act or Division 43 of the new Act. Broadly stated, it requires the transferor to provide the transferee with information that enables the latter to determine any entitlement under Division 43.

24. It is not always possible for the purchaser of a building to establish the actual cost of the building, particularly in circumstances where the builder or previous owner becomes bankrupt or is not able, for other reasons, to provide the information. In those circumstances, we accept a building cost estimate by an appropriately qualified person.

25. We consider that an appropriately qualified person has expertise in the calculation of building construction costs and is likely to be accepted by a court or tribunal as an expert witness on the issue of calculating the cost of construction of the particular building. That expertise may have been acquired through a course of study or through relevant experience in providing building cost estimates over a significant period of time.

26. The attainment of relevant professional qualifications or recognition by an appropriate professional association or organisation is indicative of expertise in this field.

27. Unless they are otherwise qualified, valuers, real estate agents, accountants and solicitors generally have neither the relevant qualifications nor experience to make such an estimate.

28. Appropriately qualified people might include:

?
a quantity surveyor, who has expertise in the relevant type of construction;

?
a clerk of works, such as a project organiser for major building projects;

?
a supervising architect who approves payments at each stage in major projects and who may approve individual payments to subcontractors in smaller projects; or

?
a builder who is experienced in estimating construction costs of similar building projects.

29. The question of whether a person has the required expertise is an issue of fact in each case.

30. We do not accept the use of published building cost guides to estimate the actual cost of construction, unless they are used merely as a guide by an appropriately qualified person. Building cost guides typically provide a cost per square metre of a range of building projects, based on industry averages. They are not sufficiently specific to the particular building being valued.

31. Building cost guides also include a reasonable profit margin for the builder. However, the builder's profit margin does not form part of the construction expenditure unless the original construction was commissioned from a builder whose charges for the work included such a profit. Where the original construction was carried out directly by the then owner, or by that owner using trade subcontractors and perhaps an architect, no such builder's profit was incurred as part of the capital expenditure on construction.

So unless you fit into one of those categories then you can't estimate the capital works deduction as it is a breach. Penalties 95%. Intentional disregard 75% plus 20% uplift penalty. That would well and truly wipe out the cost of obtaining a schedule.

Then we have the issue of the low value pool. What items go into the pool ? When do they go into the pool ? When do they move into the pool and what year ? Depreciation in the pool generally has higher rates of depreciation.

Is the asset eligible for a full write off at 100%.

First point is not estimating the costs it is reading the tax act. Depreciation schedule companies must be registered tax agents to provide such a schedule for that reason. They need to know the tax law first before they can accurately put together that complies with the law.
 
Last edited:
It's not really "tax deductible" it's taxable income deductible. if it was tax deductible I'd do it no matter how much it costs. being tax deductible just means you get a discount off that is your marginal tax rate.

Good to see you are putting in the work researching everything. I would vote with the crowd and still get it done professionally and also sponsor Depreciator.

Regardless, lets explore your statement quoted. You go to lengths to differentiate between taxable income deductible and 'tax deductible'. Aren't they both the same. In either case the dollars spent reduces your taxable income which in turn reduces your marginal tax.

Cheers
 
Just got quoted from BMT alot more than $330 and $615...

They probably heard my voice (young inexperience guy) so they applied first degree price discrimination.

Hi, fullylucky.

I can assure you that this most definitely was not the case! If anything, we pride ourselves in taking the time to explain everything so that you know what's going on.

We've never quoted $615 for anything so I'm not sure where that fee came from. Possibly it's a fee offered by another provider. You will find a whole range of fees in the marketplace and there are many reasons why $300 won't get you the same as paying double or more. Don't forget: this is part of your investment.


Thank you for providing me an example. it has a range of price values. I can extrapolate to my price range and work out Plant &
Equipment as well as Division 43 over the years.

If I collect enough data, I can plot all the trends and work backwards to a formula... look at which r^2 value is closest to 1 to determine what trend it is. Looking at the graph it looks like exponential decay.

How to put this gently? That is not a good idea. It's good to see that a lot of others here have beaten me to it and pointed out exactly why you can't do this (good on coastymike for quoting the tax rulings! TR 97/25 is the big one).

No, not even accountants can estimate capital works. They can assign values to plant & equipment items but:

a.) Are they going to inspect your house to make sure they've got everything?

b.) Are they experts at knowing the maximum values the ATO will allow?

c.) How much will they charge you for all the extra work they need to do?

A depreciation schedule not only maximises your deductions but it is also protection. If the ATO knocks on your door and all you have to show them is some calculations based on a report in the name of Mr Example Person then you won't have a leg to stand on.

It always surprises me that someone is fine with spending $700 000 on the bricks and mortar but is averse to spending 0.1% of that on what is potentially hundreds of thousands of dollars in deductions and forty years of legal protection.
 
Even an accountant couldnt accurately calculate the construction expenditure for determining the amount eligible for the division 43 allowance. Only a quantity surveyor could do that.

25. We consider that an appropriately qualified person has expertise in the calculation of building construction costs and is likely to be accepted by a court or tribunal as an expert witness on the issue of calculating the cost of construction of the particular building. That expertise may have been acquired through a course of study or through relevant experience in providing building cost estimates over a significant period of time.

26. The attainment of relevant professional qualifications or recognition by an appropriate professional association or organisation is indicative of expertise in this field.

27. Unless they are otherwise qualified, valuers, real estate agents, accountants and solicitors generally have neither the relevant qualifications nor experience to make such an estimate.

28. Appropriately qualified people might include:

* a quantity surveyor, who has expertise in the relevant type of construction;

* a clerk of works, such as a project organiser for major building projects;

* a supervising architect who approves payments at each stage in major projects and who may approve individual payments to subcontractors in smaller projects; or

* a builder who is experienced in estimating construction costs of similar building projects.

29. The question of whether a person has the required expertise is an issue of fact in each case.

First point is not estimating the costs it is reading the tax act. Depreciation schedule companies must be registered tax agents to provide such a schedule for that reason. They need to know the tax law first before they can accurately put together that complies with the law.

Thanks for setting me straight CM. I studied it years ago but I didn't do the qs stream which gave the legalities so I couldn't completely recall who was a qualified person under the act.
 
Back
Top