SCHEDULE OF PROPERTY TAX ALLOWANCES

Transcription

1 SCHEDULE OF PROPERTY TAX ALLOWANCES FOR THE PURCHASE OF Typical Unit, 6 Currawong Street, Norman Gardens, Qld PREPARED FOR: The Investor June 2013 Our Ref DT1

2 TABLE OF CONTENTS 1. CERTIFICATION SUMMARY OF ENTITLEMENTS CAPITAL EXPENDITURE ANALYSED RECONCILIATION OF CAPITAL EXPENDITURE DIMINISHING VALUE DEPRECIATION SCHEDULE PRIME COST DEPRECIATION SCHEDULE DIVISION 43 CAPITAL WORKS SCHEDULE DISCLAIMER Typical Unit, 6 Currawong Street, Norman Gardens, Qld 1

3 1. CERTIFICATION It is hereby certified that: In accordance with the Income Tax Assessment Act 1997(ITAA 1997), this report has been calculated and prepared by a qualified Quantity Surveyor. The property was visited and a detailed inspection completed to identify, measure and establish use of plant and structure. A full photographic record of the plant and building has been done for substantiation of the assets. This report has been prepared with the understanding that all items listed in this schedule are owned by the taxpayer. The Tax payer must choose either diminishing value or prime cost method of depreciation on plant, both methods are provided in this report. The low value pool is used in conjunction with the chosen method of depreciation. Under building write-off claims (Division 43) an allowance of 2.5% of the historical construction costs per year is available for this property. Depreciation claims for plant & equipment (Division 40) are available under the following criteria. An immediate deduction for assets costing $300 or less if the following four tests are satisfied: - cost of depreciating asset is $300 or less - main purpose of asset is producing income that is not income from carrying on a business - the asset is not part of a set of assets you start to hold in the income year that cost more than $300 - the asset is not one of a number of identical or substantially identical assets that cost more than $300. Otherwise assets with a cost under $1000 are contained in the low value pool, they have been depreciated at a rate of 18.75% over the whole first year using the diminishing value method. In the following years they should be depreciated at 37.5% using the diminishing value method An asset that has a written down value under $1000 in following years will be allocated to the low value pool and depreciated at 37.5% using diminishing value method. Any asset that cannot be depreciated under any of the two above options has been depreciated at rate determined by their effective life as outlined in the Tax Assessment Act 1997 (ITAA 1997). If an asset started to be held after 10 May 2006, the diminishing value rate of depreciation can be worked out by dividing the effective into 200% instead of the existing formula which uses 150%. Typical Unit, 6 Currawong Street, Norman Gardens, Qld 2

4 2. SUMMARY OF ENTITLEMENTS Summary of Claim Diminishing Value Method Summary of Claim Prime Cost Rate Depreciation Capital Yearly Depreciation Capital Yearly on Plant Allowances Total on Plant Allowances Total Year $ $ $ $ $ $ First 365 days 5,508 5,201 10,709 or 3,632 5,201 8, /2015 5,882 5,201 11,083 4,729 5,201 9, /2016 4,568 5,201 9,769 3,659 5,201 8, /2017 3,385 5,201 8,586 2,991 5,201 8, /2018 2,772 5,201 7,973 2,573 5,201 7, /2019 1,898 5,201 7,099 2,312 5,201 7, /2020 1,319 5,201 6,520 2,149 5,201 7, / ,201 6,132 2,047 5,201 7, / ,201 6,018 1,983 5,201 7, / ,201 5,902 1,936 5,201 7, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, / ,201 5, ,201 5, ,018 5, ,018 5,018 Total 28, , ,805 28, , ,805 Typical Unit, 6 Currawong Street, Norman Gardens, Qld 3

5 3. CAPITAL EXPENDITURE ANALYSED Contract Date : Settlement Date : 31-May Jun-2013 This report is based on the following overall expenditure: Purchase price $415,000 Stamp duty $12,350 Total expenditure analysed $427,350 The historical construction cost has been estimated as $242,375 and the eligible qualifying expenditure for the purposes of calculating the Division 43 deductions capital works has been taken from this total by excluding the plant and any non eligible expenditure items. The lot entitlement is 1 out of RECONCILIATION OF CAPITAL EXPENDITURE Apportionment of cost relating to: Plant $28,948 Capital allowances $207,857 Land $102,976 Balance of capital expenditure * $87,570 Total expenditure analysed $427,350 * Balance of capital expenditure comprises the apportionment of all capital works which are ineligible for depreciation or capital allowances. Typical Unit, 6 Currawong Street, Norman Gardens, Qld 4

6 5. DIMINISHING VALUE DEPRECIATION SCHEDULE Capital expenditure incurred on depreciable plant for the purchase of Typical Unit, 6 Currawong Street, Norman Gardens, Qld Prepared for: The Investor June 2013 Typical Unit, 6 Currawong Street, Norman Gardens, Qld 5

7 Year 1 Year2 Year 3 Opening 30-Jun-13 Closing 01-Jul-14 Closing 01-Jul-15 Closing Capital Expenditure Diminishing Value to WDV to WDV to WDV Incurred Upon Plant Value Rate 30-Jun Jun Jun Jun Jun Jun Jun-16 (365 days) Air-conditioning assets (excl. ducting, pipes & vents) - Mini split system upto 20KW 20.00% 6,469 1,294 5,175 1,035 4, ,312 Bathroom assets - Exhaust fans (including light/heating) 18.75% 1, Blinds Residential 18.75% 2, , , Ceiling Fans 18.75% 1, , Fire control assets - Detection & alarm systems, detectors 18.75% Floor coverings ( removable without damage) - Carpets 20.00% 5,114 1,023 4, , ,618 Garage doors, automatic - Motors 20.00% 1, , Hot water systems (excluding piping) - Gas or electric 16.67% 1, , , ,123 Kitchen assets - Cooktops 16.67% 1, , Dishwashers 20.00% 1, , , Ovens 16.67% 1, , , ,029 - Rangehoods 18.75% Lights - Shades, removable 18.75% 2, , , Pumps 18.75% Total 28,948 5,508 23,439 5,882 17,558 4,568 12,990 Low Value Pool Total 18.75% 1,755 2,852 2,448 Typical Unit, 6 Currawong Street, Norman Gardens, Qld 6

8 Year4 Year5 Year6 01-Jul-16 Closing 01-Jul-17 Closing 01-Jul-18 Closing 01-Jul-19 Closing Capital Expenditure Diminishing to WDV to WDV to WDV to WDV Incurred Upon Plant Value Rate 30-Jun Jun Jun Jun Jun Jun Jun Jun-20 Year7 Air-conditioning assets (excl. ducting, pipes & vents) - Mini split system upto 20KW 20.00% 662 2, , , ,357 Bathroom assets - Exhaust fans (including light/heating) 18.75% Blinds Residential 18.75% Ceiling Fans 18.75% Fire control assets - Detection & alarm systems, detectors 18.75% Floor coverings ( removable without damage) - Carpets 20.00% 524 2, , , ,072 Garage doors, automatic - Motors 20.00% Hot water systems (excluding piping) - Gas or electric 16.67% Kitchen assets - Cooktops 16.67% Dishwashers 20.00% Ovens 16.67% Rangehoods 18.75% Lights - Shades, removable 18.75% Pumps 18.75% Total 3,385 9,605 2,772 6,833 1,898 4,935 1,319 3,616 Low Value Pool Total 18.75% 1,840 1,823 1, Typical Unit, 6 Currawong Street, Norman Gardens, Qld 7

9 Year8 Year9 Year10 01-Jul-20 Closing 01-Jul-21 Closing 01-Jul-22 Closing Capital Expenditure Diminishing to WDV to WDV to WDV Incurred Upon Plant Value Rate 30-Jun Jun Jun Jun Jun Jun-23 Air-conditioning assets (excl. ducting, pipes & vents) - Mini split system upto 20KW 20.00% 271 1, Bathroom assets - Exhaust fans (including light/heating) 18.75% Blinds Residential 18.75% Ceiling Fans 18.75% Fire control assets - Detection & alarm systems, detectors 18.75% Floor coverings ( removable without damage) - Carpets 20.00% Garage doors, automatic - Motors 20.00% Hot water systems (excluding piping) - Gas or electric 16.67% Kitchen assets - Cooktops 16.67% Dishwashers 20.00% Ovens 16.67% Rangehoods 18.75% Lights - Shades, removable 18.75% Pumps 18.75% Total 931 2, , ,168 Low Value Pool Total 18.75% Typical Unit, 6 Currawong Street, Norman Gardens, Qld 8

10 6. PRIME COST DEPRECIATION SCHEDULE Capital expenditure incurred on depreciable plant for the purchase of Typical Unit, 6 Currawong Street, Norman Gardens, Qld Prepared for: The Investor June 2013 Typical Unit, 6 Currawong Street, Norman Gardens, Qld 9

11 Year 1 Year2 Year 3 Opening 30-Jun-13 Closing 01-Jul-14 Closing 01-Jul-15 Closing Capital Expenditure Prime Cost Value to WDV to WDV to WDV Incurred Upon Plant Rate 30-Jun Jun Jun Jun Jun Jun Jun-16 (365 days) Air-conditioning assets (excl. ducting, pipes & vents) - Mini split system upto 20KW 10.00% 6, , , ,528 Bathroom assets - Exhaust fans (including light/heating) 18.75% 1, Blinds Residential 18.75% 2, , , Ceiling Fans 18.75% 1, , Fire control assets - Detection & alarm systems, detectors 18.75% Floor coverings ( removable without damage) - Carpet 10.00% 5, , , ,580 Garage doors, automatic - Motors 10.00% 1, , , ,018 Hot water systems (excluding piping) - Gas or electric 8.33% 1, , , ,455 Kitchen assets - Cooktops 8.33% 1, , , Dishwashers 10.00% 1, , , ,132 - Ovens 8.33% 1, , , ,335 - Rangehoods 18.75% Lights - Shades, removable 18.75% 2, , , Pumps 18.75% Total 28,948 3,632 25,316 4,729 20,587 3,659 16,928 Low Value Pool Total 18.75% 1,755 2,852 1,782 Typical Unit, 6 Currawong Street, Norman Gardens, Qld 10

12 Year4 Year5 Year6 Year7 01-Jul-16 Closing 01-Jul-17 Closing 01-Jul-18 Closing 01-Jul-19 Closing Capital Expenditure Prime Cost to WDV to WDV to WDV to WDV Incurred Upon Plant Rate 30-Jun Jun Jun Jun Jun Jun Jun Jun-20 Air-conditioning assets (excl. ducting, pipes & vents) - Mini split system upto 20KW 10.00% 647 3, , , ,940 Bathroom assets - Exhaust fans (including light/heating) 18.75% Blinds Residential 18.75% Ceiling Fans 18.75% Fire control assets - Detection & alarm systems, detectors 18.75% Floor coverings ( removable without damage) - Carpet 10.00% 511 3, , , ,536 Garage doors, automatic - Motors 10.00% Hot water systems (excluding piping) - Gas or electric 8.33% 162 1, , Kitchen assets - Cooktops 8.33% Dishwashers 10.00% Ovens 8.33% 148 1, , Rangehoods 18.75% Lights - Shades, removable 18.75% Pumps 18.75% Total 2,991 13,937 2,573 11,364 2,312 9,052 2,149 6,903 Low Value Pool Total 18.75% 1, Typical Unit, 6 Currawong Street, Norman Gardens, Qld 11

13 Year8 Year9 Year10 01-Jul-20 Closing 01-Jul-21 Closing 01-Jul-22 Closing Capital Expenditure Prime Cost to WDV to WDV to WDV Incurred Upon Plant Rate 30-Jun Jun Jun Jun Jun Jun-23 Air-conditioning assets (excl. ducting, pipes & vents) - Mini split system upto 20KW 10.00% 647 1, Bathroom assets - Exhaust fans (including light/heating) 18.75% Blinds Residential 18.75% Ceiling Fans 18.75% Fire control assets - Detection & alarm systems, detectors 18.75% Floor coverings ( removable without damage) - Carpet 10.00% 511 1, Garage doors, automatic - Motors 10.00% Hot water systems (excluding piping) - Gas or electric 8.33% Kitchen assets - Cooktops 8.33% Dishwashers 10.00% Ovens 8.33% Rangehoods 18.75% Lights - Shades, removable 18.75% Pumps 18.75% Total 2,047 4,856 1,983 2,872 1, Low Value Pool Total 18.75% Typical Unit, 6 Currawong Street, Norman Gardens, Qld 12

14 7. DIVISION 43 CAPITAL WORKS SCHEDULE Capital expenditure incurred on purchase of Typical Unit, 6 Currawong Street, Norman Gardens, Qld Prepared for: The Investor June 2013 Typical Unit, 6 Currawong Street, Norman Gardens, Qld 13

15 Capital Expenditure Incurred on Qualifying Building Allowance Total Prime Annual Opening Total Opening Historical Cost Claim Residual Capital Allowance W.D.V. Cost Rate Value for 30-Jun days 01-Jul-14 Start - Completion $ $ $ $ $ 1.) 1-Jul Jun , % 4, ,346 4, ,733 Sub-total 184,523 4, ,346 4, ,733 Capital Expenditure Incurred on Qualifying Structural Improvements Total Prime Annual Opening Total Opening Historical Cost Claim Residual Capital Allowance W.D.V. Cost Rate Value for 30-Jun days 01-Jul-14 Start - Completion $ $ $ $ $ 1.) 1-Jul Jun-13 23, % , ,923 Sub-total 23, , ,923 TOTAL $ 208,057 5, ,857 5, ,656 Typical Unit, 6 Currawong Street, Norman Gardens, Qld 14

16 8. DISCLAIMER This report has been prepared for the exclusive use of the parties named within this report, KC Partnership does not accept any contractual, tortious or other form of liability for any consequences that may arise from any other person acting upon or using this valuation. Typical Unit, 6 Currawong Street, Norman Gardens, Qld 15