Case study:
Co-ownership example with and without a split report
Without split report - 50:50 ownership interest | |||||
Asset | Total opening cost | Depreciation rate | Total first year deductions | Firstyear deductions for each owner | Second year deductions for each owner |
Oven | $1,624 | 16.67% | $271 | $135 | $113 |
Rangehood | $468 | 18.75% first year 37.5% second year onwards | $88 | $44 | $71 |
Without split report - 50:50 ownership interest | ||
Asset | Oven | Rangehood |
Total opening cost | $1,624 | $468 |
Depreciation rate | 16.67% | 18.75% first year 37.5% second year onwards |
Total first year deductions | $271 | $88 |
Firstyear deductions for each owner | $135 | $44 |
Second year deductions for each owner | $113 | $71 |
The above example shows what Laura and Ian could claim if the depreciation rules are applied first and then the first year deductions are divided in half to work out each owner’s claim based on a 50 per cent ownership share.
Laura and Ian could claim a total of $726 in depreciation deductions over the first two years of ownership for the oven and the rangehood in their investment property if using a standard depreciation schedule.
BMT Tax Depreciation 50/50 split report | |||||
Asset | Total opening cost | Opening cost each owner | Depreciation rate | Firstyear deductions for each owner | Second year deductions for each owner |
Oven | $1,624 | $812 | 18.75% first year 37.5% second year onwards | $152 | $248 |
Rangehood | $468 | $234 | 100% immediate write-off | $234 | $0 |
BMT Tax Depreciation 50/50 split report | ||
Asset | Oven | Rangehood |
Total opening cost | $1,624 | $468 |
Opening cost each owner | $812 | $234 |
Depreciation rate | 18.75% first year 37.5% second year onwards | 100% immediate write-off |
Firstyear deductions for each owner | $152 | $234 |
Second year deductions for each owner | $248 | $0 |
By splitting the value of asset’s based upon each owner’s interest in the assets before applying the depreciation rules, Laura and Ian’s depreciation claim for the oven and the rangehood is increased.
A BMT Tax Depreciation split report allows Laura and Ian to claim a total of $1,268 over the first two years of ownership for these two items.
The additional deductions a BMT Tax Depreciation split report provides has even more significance when all of the assets found in Laura and Ian’s property are considered.
Learn more about the additional benefits of the split depreciation reports today
Case studies and figures are based upon tax depreciation schedules completed by BMT Tax Depreciation and do not represent any particular person or investment property scenario. The information provided is a general guide and does not constitute financial, legal or taxation advice. All figures are supplied as examples and may not represent your personal circumstances.
You acknowledge and agree you must undertake your own analysis and obtain independent legal, financial and taxation advice before using, relying or acting on any information supplied on this website.
Neither BMT Tax Depreciation, nor its Directors, Shareholders or Advisors make any representation or warranty as to the accuracy or completeness of information found in these typical examples. Nor will they have any liability to you or any other party for any representations (expressed or implied) contained in, or any omissions from, that information.
The tax depreciation deductions in this case study have been calculated based on the diminishing value method of depreciation and are based upon a first full year of ownership.
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businesses to instantly claim eligible assets.
Case studies and figures are based upon tax depreciation schedules completed by BMT Tax Depreciation and do not represent any particular person or investment property scenario. The information provided is a general guide and does not constitute financial, legal or taxation advice. All figures are supplied as examples and may not represent your personal circumstances.
You acknowledge and agree you must undertake your own analysis and obtain independent legal, financial and taxation advice before using, relying or acting on any information supplied on this website.
Neither BMT Tax Depreciation, nor its Directors, Shareholders or Advisors make any representation or warranty as to the accuracy or completeness of information found in these typical examples. Nor will they have any liability to you or any other party for any representations (expressed or implied) contained in, or any omissions from, that information.
The tax depreciation deductions in this case study have been calculated based on the diminishing value method of depreciation and are based upon a first full year of ownership.
Find out how much you could be claiming each year
How do I organise a schedule?
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1
Get a Quote Request a quote for your tax depreciation schedule.
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2
Property details We’ll collect property details, then contact your Property Manager or Tenant to arrange access to complete a property inspection.
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3
Claim deductions Your customised depreciation schedule is delivered to you and your nominated accountant.
Find out how much you could be claiming each year
How do I organise a schedule?
Request a quote for your tax depreciation schedule.
We’ll collect property details, then contact your Property Manager or Tenant to arrange access to complete a property inspection.
Your customised depreciation schedule is delivered to you and your nominated accountant.