What does a BMT Tax Depreciation report contain? | Property Investment

By BMTQS | www.bmtqs.com.au | Submitted May 2009

A detailed 22 page schedule includes the following components:

•   A method statement;
•   Schedule of Diminishing Value Method of Depreciation;
•   Schedule of Prime Cost Method of Depreciation;
•   Schedule of pooled items for the property;
•   Lists all Division 43 (10C & 10D) allowances available from the property;
•   Detailed 40 year forecast table illustrating all depreciable items together with building write off for both Prime Cost and Diminishing Value methods;
•   Comparative table of the two methods of depreciation;
•   Common property items within strata or community title complexes such as lifts and swimming pools are included in the depreciation report for a unit in a multi-unit development;
•   The report is structured to facilitate the client to be able to amend previous years' returns to re-coup unclaimed depreciation benefits; and
•   The report is pro-rata calculated for the first year of ownership based on the settlement date so that the accountant has the exact depreciation deductions for each year. The report will ensure maximum depreciable items are identified and will take into account the pooling of low cost and low value items. It is valid for the life of the property, until capital improvements are undertaken or ownership changes.