A depreciation schedule should not simply give one total number.
Accountants need to know:
- What is plant and equipment
- What is capital works
- What is new
- What is second-hand
- What is residential
- What is commercial
- What is claimable annually
- What is restricted
- What may affect CGT
- What relates to renovations
- What relates to common property
Division 43 is building-related and may affect CGT cost base.
For second-hand residential property, the split is essential because existing used Division 40 assets may be restricted while Division 43 capital works may remain claimable.