Tenants Leftovers – Landlords Bonus!
If vacating tenants have left fixtures and fittings in your investment property, some of them may be eligible for depreciation claims. KY Pih from Napier & Blakeley’s Brisbane office explains the principles.
Property tax depreciation has two parts:
(1) Division 40 items are plant and equipment like carpets, vinyl, lights, air conditioners, curtains, fire equipment, and hot water units; and
(2) Division 43 items are generally considered the ‘shell’ of the building and include things like walls, floors, ceilings, pipework, ductwork, etc.
If a tenant vacates and leaves Division 40 items behind, unfortunately the landlord is not entitled to claim depreciation on them because they did not incur the original expenditure. However, the landlord can continue to use the fitout to generate further income. Continue reading
2015 Budget – Accelerated Depreciation for Primary Producer’s Analysis
The federal government will sanction all primary producers, an immediate deduction for the cost of new fencing and investment in water facilities (such as dams, tanks, bores, irrigation channels, pumps, water towers and windmills).
The Government will additionally allow primary producers, a 3 year deprecation allowance for all capital expenditure on fodder storage assets (such as silos and tanks used to store grain and other animal feed).
Currently, the effective life of the above mentioned assets are:
- Fences – up to 30 years
- Fodder storage assets – up to 50 years
- Water facilities – 3 years Continue reading
