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Hi Everyone,
Can I continue to diminish the balance at say 10% indefinitely or do I claim the full value left at year 10?
MJK
What do I do if my depreciation schedule only runs for 10 years. There are no figures for the 11 year or subsequent years.?
My accountant in the past has suggested using 10% as a conservative figure which wont get anyone into trouble. Maybe a bit old school.
They run for 40 years from when they were built post mid-late 1980's.
Ah, I see now. Your original provider should be able to update it for you. Otherwise, unfortunately the answer may well be "a fair amount of mathematics". The amount may depend on whether diminishing value or prime cost has been used.
40 years if for division 43 capital I believe.
MJK
Hey Chris,
Are you gonna tell me the last schedule you did for a client went past 20 years mate? Some of us actually hang on to property and don't sell it every five minutes. Maybe you've never owned an IP that long?
MJK
I don't mind you trying to tell me what's what but your analogy is a little sharp.
Perhaps if you said you actually "owned the shirt" it would be better because I'm not talking about fictional plant.....just how to treat it. What you have suggested is I am trying to cheat and that's exactly contrary to my intention.
MJK
However said:I hear what you are saying but a quick look at a schedule and I see nothing being depreciated at a lower rate than 10% in the plant column.... therefore it stands to reason that one would be under claiming rather than over claiming.
I believe that is where my accountant was coming from. We didn't make up the original values. That was done by a quantity surveyor.
MJK
That was done by a quantity surveyor.
MJK
Rixter,
Yes. I would have liked them longer.
approaching them ...well its been 10 years...
mJK
I don't really find the idea of getting new schedule made up that palatable. There's got to be a better way?
I hear what you are saying but a quick look at a schedule and I see nothing being depreciated at a lower rate than 10% in the plant column.... therefore it stands to reason that one would be under claiming rather than over claiming.
I believe that is where my accountant was coming from. We didn't make up the original values. That was done by a quantity surveyor.
I think your quantity surveyor's report is not the length is should have been.
Well that's what I'm getting at but so far I'm being told I cant do that. I had hoped I could? I was just going to use the written down value and continue to depreciate at low figure of10% but I'm still trying to figure out if that is allowed.
MJK
Alas, ten to fifteen years ago, most depreciation schedules (including ours) only covered ten years. It was just the way it was done back then.