Park View NORTH LAKES, QLD 4509
Park View NORTH LAKES, QLD 4509
BMT Tax Depreciation QUANTITY SURVEYORS
Level 7, 320 Adelaide Street Brisbane QLD 4000 GPO Box 3229 Brisbane QLD 4001 t 07 3221 9922 e [email protected] f 07 3221 9933 w www.bmtqs.com.au Australia Wide Service
ABN 44 115 282 392
26 May, 2015 Phillip Usher Constructions PO Box 1536 BROWNS PLAINS, QLD 4118 Park View, NORTH LAKES, QLD 4509 - 371457 Dear Sir/Madam, Please find attached the BMT Tax Depreciation Estimates for the above property detailing the depreciation and associated tax allowances that may be available to the owner under the Income Tax Assessment Act 1997 (ITAA97). This document is intended to provide a guide to the potential depreciation and building allowances available from the purchase of the above residential property, facilitating the estimation of the after tax return on the investment over the first 10 full years of ownership. 1.0 Information The following information was used in the preparation of the schedules:
§
Written and verbal information provided by Phillip Usher Constructions.
2.0 Depreciation Potential – Plant and Capital Allowance The purchaser of the property, intending to use it for income producing purposes, is entitled to depreciation including:
§ §
Division 40, Depreciation of Plant and Equipment; and Division 43, Capital Works Allowance (2.5 % pa).
The depreciation of plant and equipment items is based on the diminishing value effective life rates as published by the commissioner of taxation (TR2014/4). In the scenario where plant and equipment items are not sold at an agreed value these items will be depreciated on the basis of a just attribution of the total expenditure (42-65 ITAA97). 3.0 Capital Work Allowance The special building write off allowance is based on the industry specific eligible dates. If the property qualifies for the special building write off, the applicable depreciation rate will be used. Where properties do not qualify for the special building write off allowance, no capital works allowance will be used.
Maximising Property Tax Depreciation Deductions 371457
BMTTax Depreciation QUANTITY SURVEYORS
The allowance for capital works will be based on the historical cost of construction less nondepreciable items. 4.0 Estimate Calculation This report is based on a just attribution of the total expenditure to estimate the allowances for plant. The estimates provided are based on the sale price as indicated, as the final purchase price at this time is not known. This estimate has been provided for the purpose of informing the investor of the depreciation potential. Different depreciation returns are available and are influenced by the purchase price of the property. Please note that the first year calculations are based on ownership over a full financial year. 5.0 Disclaimer This report has been based on very preliminary documentation, and the figures provided should be treated as a guide only. As documentation improves, BMT Tax Depreciation will be able to provide more accurate estimates of depreciation. 6.0 Conclusion As can be extracted from the attached tables, the units will obtain maximum depreciation potential within the first 5 years of ownership. BMT Tax Depreciation would be pleased to provide a complete detailed tax depreciation report on any of the units in the above property upon request. Our results suggest employing a specialist to maximise the various tax allowances has a significant effect on improving the after tax return. Should you or the purchaser wish to discuss the contents of this report in more detail, please do not hesitate to contact Bradley Beer at the office.
Yours Sincerely,
BMT Tax Depreciation Pty Ltd Quantity Surveyors
Maximising Property Tax Depreciation Deductions 371457
BMTTax Depreciation QUANTITY SURVEYORS
Appendix One BMT Tax Depreciation Estimate Park View NORTH LAKES, QLD 4509
Maximising Property Tax Depreciation Deductions 371457
BMT Tax Depreciation
Level 7, 320 Adelaide Street Brisbane QLD 4000 GPO Box 3229 Brisbane QLD 4001
QUANTITY SURVEYORS
t 07 3221 9922 e [email protected] f 07 3221 9933 w www.bmtqs.com.au Australia Wide Service
ABN 44 115 282 392
Estimate of Depreciation Claimable Type T3 Park View, NORTH LAKES, QLD 4509 Purchase Price $360,000 Comparison Yr 1-10 (Max & Min)
Maximum Year
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
5,360 5,144 3,674 2,673 2,363 1,854 1,432 948 803 502 834
5,007 5,007 5,007 5,007 5,007 5,007 5,007 5,007 5,007 5,007 150,203
10,367 10,151 8,681 7,680 7,370 6,861 6,439 5,955 5,810 5,509 151,037
Total
$25,587
$200,273
$225,860
$9,900
Minimum Year
$11,000
$8,800 $7,700 $6,600 $5,500 $4,400 $3,300 $2,200 $1,100 $0
1
2
3
4
5 6 7 8 Years Maximum Minimum
9
10
Cumulative Yr 1-10 (Min & Max)
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
4,386 4,208 3,006 2,187 1,933 1,517 1,172 776 657 410 682
4,097 4,097 4,097 4,097 4,097 4,097 4,097 4,097 4,097 4,097 122,893
8,483 8,305 7,103 6,284 6,030 5,614 5,269 4,873 4,754 4,507 123,575
Total
$20,934
$163,863
$184,797
$75,000 $67,500 $60,000 $52,500 $45,000 $37,500 $30,000 $22,500 $15,000 $7,500 $0
1
2
3
4
5 6 7 8 Years Maximum Minimum
9
10
* assumes settlement on 1 July in any given year.
This is an estimate only and should not be applied or acted upon. Depreciation of plant is based on the Diminishing Value method of depreciation applying Low-Value Pooling. The Division 43 Write Off Allowance is calculated using 2.5% depending on the property type and date of construction. This estimate is based upon legislation in force at the date of report production.
This Estimate Cannot Be Used For Taxation Purposes To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 07 3221 9922
Maximising Property Tax Depreciation Deductions 371457
BMT Tax Depreciation
Level 7, 320 Adelaide Street Brisbane QLD 4000 GPO Box 3229 Brisbane QLD 4001
QUANTITY SURVEYORS
t 07 3221 9922 e [email protected] f 07 3221 9933 w www.bmtqs.com.au Australia Wide Service
ABN 44 115 282 392
Estimate of Depreciation Claimable Type DG6 Park View, NORTH LAKES, QLD 4509 Purchase Price $399,000 Comparison Yr 1-10 (Max & Min)
Maximum Year
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
5,770 6,029 4,271 3,078 2,643 2,052 1,574 1,052 710 657 1,092
6,725 6,725 6,725 6,725 6,725 6,725 6,725 6,725 6,725 6,725 201,775
12,495 12,754 10,996 9,803 9,368 8,777 8,299 7,777 7,435 7,382 202,867
Total
$28,928
$269,025
$297,953
$11,700
Minimum Year
$13,000
$10,400 $9,100 $7,800 $6,500 $5,200 $3,900 $2,600 $1,300 $0
1
2
3
4
5 6 7 8 Years Maximum Minimum
9
10
Cumulative Yr 1-10 (Min & Max)
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
4,721 4,933 3,495 2,518 2,163 1,679 1,288 860 581 537 894
5,503 5,503 5,503 5,503 5,503 5,503 5,503 5,503 5,503 5,503 165,089
10,224 10,436 8,998 8,021 7,666 7,182 6,791 6,363 6,084 6,040 165,983
Total
$23,669
$220,119
$243,788
$96,000 $86,400 $76,800 $67,200 $57,600 $48,000 $38,400 $28,800 $19,200 $9,600 $0
1
2
3
4
5 6 7 8 Years Maximum Minimum
9
10
* assumes settlement on 1 July in any given year.
This is an estimate only and should not be applied or acted upon. Depreciation of plant is based on the Diminishing Value method of depreciation applying Low-Value Pooling. The Division 43 Write Off Allowance is calculated using 2.5% depending on the property type and date of construction. This estimate is based upon legislation in force at the date of report production.
This Estimate Cannot Be Used For Taxation Purposes To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 07 3221 9922
Maximising Property Tax Depreciation Deductions 371457
BMT Tax Depreciation QUANTITY SURVEYORS
Level 7, 320 Adelaide Street Brisbane QLD 4000 GPO Box 3229 Brisbane QLD 4001 t 07 3221 9922 e [email protected] f 07 3221 9933 w www.bmtqs.com.au Australia Wide Service
ABN 44 115 282 392
26 May, 2015 Phillip Usher Constructions PO Box 1536 BROWNS PLAINS, QLD 4118 Park View, NORTH LAKES, QLD 4509 - 371457 Dear Sir/Madam, Please find attached the BMT Tax Depreciation Estimates for the above property detailing the depreciation and associated tax allowances that may be available to the owner under the Income Tax Assessment Act 1997 (ITAA97). This document is intended to provide a guide to the potential depreciation and building allowances available from the purchase of the above residential property, facilitating the estimation of the after tax return on the investment over the first 10 full years of ownership. 1.0 Information The following information was used in the preparation of the schedules:
§
Written and verbal information provided by Phillip Usher Constructions.
2.0 Depreciation Potential – Plant and Capital Allowance The purchaser of the property, intending to use it for income producing purposes, is entitled to depreciation including:
§ §
Division 40, Depreciation of Plant and Equipment; and Division 43, Capital Works Allowance (2.5 % pa).
The depreciation of plant and equipment items is based on the diminishing value effective life rates as published by the commissioner of taxation (TR2014/4). In the scenario where plant and equipment items are not sold at an agreed value these items will be depreciated on the basis of a just attribution of the total expenditure (42-65 ITAA97). 3.0 Capital Work Allowance The special building write off allowance is based on the industry specific eligible dates. If the property qualifies for the special building write off, the applicable depreciation rate will be used. Where properties do not qualify for the special building write off allowance, no capital works allowance will be used.
Maximising Property Tax Depreciation Deductions 371457
BMTTax Depreciation QUANTITY SURVEYORS
The allowance for capital works will be based on the historical cost of construction less nondepreciable items. 4.0 Estimate Calculation This report is based on a just attribution of the total expenditure to estimate the allowances for plant. The estimates provided are based on the sale price as indicated, as the final purchase price at this time is not known. This estimate has been provided for the purpose of informing the investor of the depreciation potential. Different depreciation returns are available and are influenced by the purchase price of the property. Please note that the first year calculations are based on ownership over a full financial year. 5.0 Disclaimer This report has been based on very preliminary documentation, and the figures provided should be treated as a guide only. As documentation improves, BMT Tax Depreciation will be able to provide more accurate estimates of depreciation. 6.0 Conclusion As can be extracted from the attached tables, the units will obtain maximum depreciation potential within the first 5 years of ownership. BMT Tax Depreciation would be pleased to provide a complete detailed tax depreciation report on any of the units in the above property upon request. Our results suggest employing a specialist to maximise the various tax allowances has a significant effect on improving the after tax return. Should you or the purchaser wish to discuss the contents of this report in more detail, please do not hesitate to contact Bradley Beer at the office.
Yours Sincerely,
BMT Tax Depreciation Pty Ltd Quantity Surveyors
Maximising Property Tax Depreciation Deductions 371457
BMTTax Depreciation QUANTITY SURVEYORS
Appendix One BMT Tax Depreciation Estimate Park View NORTH LAKES, QLD 4509
Maximising Property Tax Depreciation Deductions 371457
BMT Tax Depreciation
Level 7, 320 Adelaide Street Brisbane QLD 4000 GPO Box 3229 Brisbane QLD 4001
QUANTITY SURVEYORS
t 07 3221 9922 e [email protected] f 07 3221 9933 w www.bmtqs.com.au Australia Wide Service
ABN 44 115 282 392
Estimate of Depreciation Claimable Type T3 Park View, NORTH LAKES, QLD 4509 Purchase Price $360,000 Comparison Yr 1-10 (Max & Min)
Maximum Year
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
5,360 5,144 3,674 2,673 2,363 1,854 1,432 948 803 502 834
5,007 5,007 5,007 5,007 5,007 5,007 5,007 5,007 5,007 5,007 150,203
10,367 10,151 8,681 7,680 7,370 6,861 6,439 5,955 5,810 5,509 151,037
Total
$25,587
$200,273
$225,860
$9,900
Minimum Year
$11,000
$8,800 $7,700 $6,600 $5,500 $4,400 $3,300 $2,200 $1,100 $0
1
2
3
4
5 6 7 8 Years Maximum Minimum
9
10
Cumulative Yr 1-10 (Min & Max)
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
4,386 4,208 3,006 2,187 1,933 1,517 1,172 776 657 410 682
4,097 4,097 4,097 4,097 4,097 4,097 4,097 4,097 4,097 4,097 122,893
8,483 8,305 7,103 6,284 6,030 5,614 5,269 4,873 4,754 4,507 123,575
Total
$20,934
$163,863
$184,797
$75,000 $67,500 $60,000 $52,500 $45,000 $37,500 $30,000 $22,500 $15,000 $7,500 $0
1
2
3
4
5 6 7 8 Years Maximum Minimum
9
10
* assumes settlement on 1 July in any given year.
This is an estimate only and should not be applied or acted upon. Depreciation of plant is based on the Diminishing Value method of depreciation applying Low-Value Pooling. The Division 43 Write Off Allowance is calculated using 2.5% depending on the property type and date of construction. This estimate is based upon legislation in force at the date of report production.
This Estimate Cannot Be Used For Taxation Purposes To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 07 3221 9922
Maximising Property Tax Depreciation Deductions 371457
BMT Tax Depreciation
Level 7, 320 Adelaide Street Brisbane QLD 4000 GPO Box 3229 Brisbane QLD 4001
QUANTITY SURVEYORS
t 07 3221 9922 e [email protected] f 07 3221 9933 w www.bmtqs.com.au Australia Wide Service
ABN 44 115 282 392
Estimate of Depreciation Claimable Type DG6 Park View, NORTH LAKES, QLD 4509 Purchase Price $399,000 Comparison Yr 1-10 (Max & Min)
Maximum Year
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
5,770 6,029 4,271 3,078 2,643 2,052 1,574 1,052 710 657 1,092
6,725 6,725 6,725 6,725 6,725 6,725 6,725 6,725 6,725 6,725 201,775
12,495 12,754 10,996 9,803 9,368 8,777 8,299 7,777 7,435 7,382 202,867
Total
$28,928
$269,025
$297,953
$11,700
Minimum Year
$13,000
$10,400 $9,100 $7,800 $6,500 $5,200 $3,900 $2,600 $1,300 $0
1
2
3
4
5 6 7 8 Years Maximum Minimum
9
10
Cumulative Yr 1-10 (Min & Max)
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
4,721 4,933 3,495 2,518 2,163 1,679 1,288 860 581 537 894
5,503 5,503 5,503 5,503 5,503 5,503 5,503 5,503 5,503 5,503 165,089
10,224 10,436 8,998 8,021 7,666 7,182 6,791 6,363 6,084 6,040 165,983
Total
$23,669
$220,119
$243,788
$96,000 $86,400 $76,800 $67,200 $57,600 $48,000 $38,400 $28,800 $19,200 $9,600 $0
1
2
3
4
5 6 7 8 Years Maximum Minimum
9
10
* assumes settlement on 1 July in any given year.
This is an estimate only and should not be applied or acted upon. Depreciation of plant is based on the Diminishing Value method of depreciation applying Low-Value Pooling. The Division 43 Write Off Allowance is calculated using 2.5% depending on the property type and date of construction. This estimate is based upon legislation in force at the date of report production.
This Estimate Cannot Be Used For Taxation Purposes To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 07 3221 9922
Maximising Property Tax Depreciation Deductions 371457
