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. 403279.DT1
TABLE OF CONTENTS 1. CERTIFICATION... 2 2. SUMMARY OF ENTITLEMENTS... 3 3. CAPITAL EXPENDITURE ANALYSED... 4 4. RECONCILIATION OF CAPITAL EXPENDITURE... 4 5. DIMINISHING VALUE DEPRECIATION SCHEDULE... 5 6. PRIME COST DEPRECIATION SCHEDULE... 9 7. DIVISION 43 CAPITAL WORKS SCHEDULE... 13 8. DISCLAIMER... 15 Typical Unit, 6 Currawong Street, Norman Gardens, Qld 1
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
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 8,833 2014/2015 5,882 5,201 11,083 4,729 5,201 9,930 2015/2016 4,568 5,201 9,769 3,659 5,201 8,860 2016/2017 3,385 5,201 8,586 2,991 5,201 8,192 2017/2018 2,772 5,201 7,973 2,573 5,201 7,774 2018/2019 1,898 5,201 7,099 2,312 5,201 7,513 2019/2020 1,319 5,201 6,520 2,149 5,201 7,350 2020/2021 931 5,201 6,132 2,047 5,201 7,248 2021/2022 817 5,201 6,018 1,983 5,201 7,184 2022/2023 701 5,201 5,902 1,936 5,201 7,137 2023/2024 438 5,201 5,639 456 5,201 5,657 2024/2025 274 5,201 5,475 434 5,201 5,635 2025/2026 171 5,201 5,372 20 5,201 5,221 2026/2027 107 5,201 5,308 10 5,201 5,211 2027/2028 67 5,201 5,268 6 5,201 5,207 2028/2029 42 5,201 5,243 4 5,201 5,205 2029/2030 26 5,201 5,227 2 5,201 5,203 2030/2031 16 5,201 5,217 2 5,201 5,203 2031/2032 10 5,201 5,211 1 5,201 5,202 2032/2033 6 5,201 5,207 1 5,201 5,202 2033/2034 4 5,201 5,205 0 5,201 5,201 2034/2035 2 5,201 5,203 0 5,201 5,201 2035/2036 2 5,201 5,203 0 5,201 5,201 2036/2037 1 5,201 5,202 0 5,201 5,201 2037/2038 1 5,201 5,202 0 5,201 5,201 2038/2039 0 5,201 5,201 0 5,201 5,201 2039/2040 0 5,201 5,201 0 5,201 5,201 2040/2041 0 5,201 5,201 0 5,201 5,201 2041/2042 0 5,201 5,201 0 5,201 5,201 2042/2043 0 5,201 5,201 0 5,201 5,201 2043/2044 0 5,201 5,201 0 5,201 5,201 2044/2045 0 5,201 5,201 0 5,201 5,201 2045/2046 0 5,201 5,201 0 5,201 5,201 2046/2047 0 5,201 5,201 0 5,201 5,201 2047/2048 0 5,201 5,201 0 5,201 5,201 2048/2049 0 5,201 5,201 0 5,201 5,201 2049/2050 0 5,201 5,201 0 5,201 5,201 2050/2051 0 5,201 5,201 0 5,201 5,201 2051/2052 0 5,201 5,201 0 5,201 5,201 2053+ 0 5,018 5,018 0 5,018 5,018 Total 28,948 207,857 236,805 28,948 207,857 236,805 Typical Unit, 6 Currawong Street, Norman Gardens, Qld 3
3. CAPITAL EXPENDITURE ANALYSED Contract Date : Settlement Date : 31-May-2013 30-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 10. 4. 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
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
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-13 30-Jun-14 30-Jun-14 30-Jun-15 30-Jun-15 30-Jun-16 30-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 4,140 828 3,312 Bathroom assets - Exhaust fans (including light/heating) 18.75% 1,213 227 985 370 616 231 385 Blinds Residential 18.75% 2,438 457 1,981 743 1,238 464 774 Ceiling Fans 18.75% 1,617 303 1,314 493 821 308 513 Fire control assets - Detection & alarm systems, detectors 18.75% 388 73 315 118 197 74 123 Floor coverings ( removable without damage) - Carpets 20.00% 5,114 1,023 4,091 818 3,273 655 2,618 Garage doors, automatic - Motors 20.00% 1,456 291 1,164 233 932 349 582 Hot water systems (excluding piping) - Gas or electric 16.67% 1,941 323 1,617 270 1,348 225 1,123 Kitchen assets - Cooktops 16.67% 1,213 202 1,011 168 842 316 526 - Dishwashers 20.00% 1,617 323 1,294 259 1,035 207 828 - Ovens 16.67% 1,779 296 1,482 247 1,235 206 1,029 - Rangehoods 18.75% 566 106 460 172 287 108 180 Lights - Shades, removable 18.75% 2,329 437 1,892 710 1,183 443 739 Pumps 18.75% 809 152 657 246 411 154 257 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
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-17 30-Jun-17 30-Jun-18 30-Jun-18 30-Jun-19 30-Jun-19 30-Jun-20 30-Jun-20 Year7 Air-conditioning assets (excl. ducting, pipes & vents) - Mini split system upto 20KW 20.00% 662 2,650 530 2,120 424 1,696 339 1,357 Bathroom assets - Exhaust fans (including light/heating) 18.75% 144 241 90 150 56 94 35 59 Blinds Residential 18.75% 290 484 181 302 113 189 71 118 Ceiling Fans 18.75% 192 321 120 200 75 125 47 78 Fire control assets - Detection & alarm systems, detectors 18.75% 46 77 29 48 18 30 11 19 Floor coverings ( removable without damage) - Carpets 20.00% 524 2,095 419 1,676 335 1,341 268 1,072 Garage doors, automatic - Motors 20.00% 218 364 136 227 85 142 53 89 Hot water systems (excluding piping) - Gas or electric 16.67% 187 936 351 585 219 366 137 228 Kitchen assets - Cooktops 16.67% 197 329 123 206 77 129 48 80 - Dishwashers 20.00% 311 518 194 323 121 202 76 126 - Ovens 16.67% 172 858 322 536 201 335 126 209 - Rangehoods 18.75% 67 112 42 70 26 44 16 27 Lights - Shades, removable 18.75% 277 462 173 289 108 180 68 113 Pumps 18.75% 96 160 60 100 38 63 23 39 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 1,139 712 Typical Unit, 6 Currawong Street, Norman Gardens, Qld 7
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-21 30-Jun-21 30-Jun-22 30-Jun-22 30-Jun-23 30-Jun-23 Air-conditioning assets (excl. ducting, pipes & vents) - Mini split system upto 20KW 20.00% 271 1,085 217 868 326 543 Bathroom assets - Exhaust fans (including light/heating) 18.75% 22 37 14 23 9 14 Blinds Residential 18.75% 44 74 28 46 17 29 Ceiling Fans 18.75% 29 49 18 31 11 19 Fire control assets - Detection & alarm systems, detectors 18.75% 7 12 4 7 3 5 Floor coverings ( removable without damage) - Carpets 20.00% 214 858 322 536 201 335 Garage doors, automatic - Motors 20.00% 33 56 21 35 13 22 Hot water systems (excluding piping) - Gas or electric 16.67% 86 143 54 89 33 56 Kitchen assets - Cooktops 16.67% 30 50 19 31 12 20 - Dishwashers 20.00% 47 79 30 49 19 31 - Ovens 16.67% 79 131 49 82 31 51 - Rangehoods 18.75% 10 17 6 11 4 7 Lights - Shades, removable 18.75% 42 70 26 44 17 28 Pumps 18.75% 15 24 9 15 6 10 Total 931 2,685 817 1,868 701 1,168 Low Value Pool Total 18.75% 445 600 701 Typical Unit, 6 Currawong Street, Norman Gardens, Qld 8
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
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-13 30-Jun-14 30-Jun-14 30-Jun-15 30-Jun-15 30-Jun-16 30-Jun-16 (365 days) Air-conditioning assets (excl. ducting, pipes & vents) - Mini split system upto 20KW 10.00% 6,469 647 5,822 647 5,175 647 4,528 Bathroom assets - Exhaust fans (including light/heating) 18.75% 1,213 227 985 370 616 231 385 Blinds Residential 18.75% 2,438 457 1,981 743 1,238 464 774 Ceiling Fans 18.75% 1,617 303 1,314 493 821 308 513 Fire control assets - Detection & alarm systems, detectors 18.75% 388 73 315 118 197 74 123 Floor coverings ( removable without damage) - Carpet 10.00% 5,114 511 4,602 511 4,091 511 3,580 Garage doors, automatic - Motors 10.00% 1,456 146 1,310 146 1,164 146 1,018 Hot water systems (excluding piping) - Gas or electric 8.33% 1,941 162 1,779 162 1,617 162 1,455 Kitchen assets - Cooktops 8.33% 1,213 101 1,112 101 1,011 101 910 - Dishwashers 10.00% 1,617 162 1,456 162 1,294 162 1,132 - Ovens 8.33% 1,779 148 1,631 148 1,483 148 1,335 - Rangehoods 18.75% 566 106 460 172 287 108 180 Lights - Shades, removable 18.75% 2,329 437 1,892 710 1,183 443 739 Pumps 18.75% 809 152 657 246 411 154 257 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
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-17 30-Jun-17 30-Jun-18 30-Jun-18 30-Jun-19 30-Jun-19 30-Jun-20 30-Jun-20 Air-conditioning assets (excl. ducting, pipes & vents) - Mini split system upto 20KW 10.00% 647 3,881 647 3,234 647 2,587 647 1,940 Bathroom assets - Exhaust fans (including light/heating) 18.75% 144 241 90 150 56 94 35 59 Blinds Residential 18.75% 290 484 181 302 113 189 71 118 Ceiling Fans 18.75% 192 321 120 200 75 125 47 78 Fire control assets - Detection & alarm systems, detectors 18.75% 46 77 29 48 18 30 11 19 Floor coverings ( removable without damage) - Carpet 10.00% 511 3,069 511 2,558 511 2,047 511 1,536 Garage doors, automatic - Motors 10.00% 146 872 146 726 146 580 146 434 Hot water systems (excluding piping) - Gas or electric 8.33% 162 1,293 162 1,131 162 969 162 807 Kitchen assets - Cooktops 8.33% 101 809 101 708 101 607 101 506 - Dishwashers 10.00% 162 970 162 808 162 646 162 484 - Ovens 8.33% 148 1,187 148 1,039 148 891 148 743 - Rangehoods 18.75% 67 112 42 70 26 44 16 27 Lights - Shades, removable 18.75% 277 462 173 289 108 180 68 113 Pumps 18.75% 96 160 60 100 38 63 23 39 Total 2,991 13,937 2,573 11,364 2,312 9,052 2,149 6,903 Low Value Pool Total 18.75% 1,114 696 435 272 Typical Unit, 6 Currawong Street, Norman Gardens, Qld 11
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-21 30-Jun-21 30-Jun-22 30-Jun-22 30-Jun-23 30-Jun-23 Air-conditioning assets (excl. ducting, pipes & vents) - Mini split system upto 20KW 10.00% 647 1,293 647 646 646 Bathroom assets - Exhaust fans (including light/heating) 18.75% 22 37 14 23 9 14 Blinds Residential 18.75% 44 74 28 46 17 29 Ceiling Fans 18.75% 29 49 18 31 11 19 Fire control assets - Detection & alarm systems, detectors 18.75% 7 12 4 7 3 5 Floor coverings ( removable without damage) - Carpet 10.00% 511 1,025 511 514 511 3 Garage doors, automatic - Motors 10.00% 146 288 146 142 142 Hot water systems (excluding piping) - Gas or electric 8.33% 162 645 162 483 162 321 Kitchen assets - Cooktops 8.33% 101 405 101 304 101 203 - Dishwashers 10.00% 162 322 162 160 160 - Ovens 8.33% 148 595 148 447 148 299 - Rangehoods 18.75% 10 17 6 11 4 7 Lights - Shades, removable 18.75% 42 70 26 44 17 28 Pumps 18.75% 15 24 9 15 6 10 Total 2,047 4,856 1,983 2,872 1,936 936 Low Value Pool Total 18.75% 170 106 66 Typical Unit, 6 Currawong Street, Norman Gardens, Qld 12
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
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-13 365 days 01-Jul-14 Start - Completion $ $ $ $ $ 1.) 1-Jul-12-16-Jun-13 184,523 2.50% 4,613 184,346 4,613 179,733 Sub-total 184,523 4,613 184,346 4,613 179,733 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-13 365 days 01-Jul-14 Start - Completion $ $ $ $ $ 1.) 1-Jul-12-16-Jun-13 23,534 2.50% 588 23,511 588 22,923 Sub-total 23,534 588 23,511 588 22,923 TOTAL $ 208,057 5,201 207,857 5,201 202,656 Typical Unit, 6 Currawong Street, Norman Gardens, Qld 14
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