For accountants, a tax depreciation schedule should make the tax claim easier, not harder.
A good schedule should clearly show:
- Client name and property address
- Ownership percentage
- Property type
- Inspection or assessment basis
- Date available for rent or income-producing use
- Division 40 plant and equipment
- Division 43 capital works
- Low-value pool calculations where relevant
- Year-by-year deduction summary
- 40-year projection
- Assumptions and exclusions
- Notes about second-hand residential plant and equipment
- Any capital loss or CGT-related notes
The next section is Division 40. This covers depreciating assets such as appliances, blinds, carpet, air conditioning, furniture, commercial equipment and other eligible plant.
The next section is Division 43. This covers capital works, generally the building structure and eligible improvements.
For residential property purchased after 9 May 2017, accountants should check whether the schedule has excluded second-hand plant and equipment where required. Capital works may still be claimable.
For commercial property, the schedule may be more detailed because commercial assets can include fit-out, services, furniture, tenant works, leasehold improvements and plant.
Koste.ai can help accountants and clients keep depreciation information in one place, request reports, manage property details and understand where deductions may exist.