Did you know you can claim depreciation on “working dogs”?
Another determinant by the ATO has classified working dogs specifically those used for security
, therapy, detection, guard, and law enforcement, purchased or used effective as of 1 July 2019, as a capital allowance deduction. Most working dogs now have an effective life of 8 years, I wonder what the Easter Bunny’s effective life would be, not to mention working reindeers and other animals. Refer to this link for actual ATO determination of Working Dogs.
As tax time and the federal election draws near, the impact on the property market will become clear. We’ll keep you updated, in the meantime, have a happy and safe Easter break.
Cladding – Tax Deductions – Repair or Improve – ATO Determination
Recently the ATO has determined the replacement of ACC (Aluminium Composite Cladding), is in fact an improvement to your property and not a repair.
We have several clients who are now reviewing their ACC on their sites and discussing with their fire engineer a solution to rectify their property and make safe moving forward.
The ATO have clearly said these costs will be a capital improvement for the purpose of Division 43 of the ITAA 1997 (refer to the link further below).
In financial modelling, this means, if the new cladding installed cost $1m, you can depreciate this cost from completion of installation over the next 40 years (2.5%) which equates to a deduction of $25,000 per year, as an example.
An additional deduction may be allowed to write off the existing cladding, if the original cost and installation was completed after 1979 on hotels (40 year life), commercial, aged care, industrial buildings and similar construction which commenced after 16 September 1987 (2.5%). As we have qualified quantity surveyors registered on the Tax Practioners Board we can provide this deduction for you.
Below is the link from the ATO which provides some more clarity and discussion. Continue reading
