A Tale of Two Towers, Haymarket, Sydney
It’s common for our NBtax team to inspect properties within the same apartment complex to evaluate the depreciation values on behalf of our clients.
In this scenario, we’re reviewing the building and the assets for two apartments located in different towers of The Quay in Haymarket, Sydney.
Situated in the heart of the vibrant and bustling Sydney CBD, the properties are within walking distance to Chinatown, Darling Harbour, U.T.S, Sydney University, and Darling Square, plus transport, shops, and entertainment.
Both properties were purchased in 2015 and held as investments by our clients. This means our clients are entitled to claim depreciation allowances for both the Building and Plant & Equipment Assets (Division 43 & 40).
The building allowances are based on the original construction costs and any capital works since 2015.
The properties also offer residents/tenants access to shared facilities. These include entrance foyer, mail room, gymnasium, outdoor entertainment and garden area, plus secure underground car parking, and lifts.
Our NBtax depreciation report includes a share of the depreciation values of common assets as outlined above. Other building facilities such as ventilation, fire controls, alarms, and security systems are assessed too.
The Plant & Equipment values are calculated on the individual assets within each apartment. Items included kitchen and laundry appliances, air conditioners, curtains and drapes, hot water, and security systems. The depreciation values of these assets are determined by the purchase cost and adjusted based on age and wear and tear.
Our NBtax depreciation reports provide our clients with a detailed breakdown of the depreciation deductions since the properties were purchased in 2015.
Property A
- Depreciation deductions (Divisions 43 & 40): $26,310 during the first full year (2016).
- Depreciation deductions (Divisions 43 & 40): $15,481 for year ending June 2022
- Total deductions over 40 years - $534,610
Property B
- Depreciation deductions (Divisions 43 & 40): $31,562 during the first full year (2016).
- Depreciation deductions (Divisions 43 & 40): $18,036 for year ending June 2022
- Total deductions over 40 years - $614,782
The difference in depreciation deductions between Property A and B result from the variations in the Plant & Equipment assets within the properties.
Our clients can use our NBtax depreciation reports for all future tax returns. If appropriate their accountant can submit a variation of past tax returns to claim depreciation allowances.
It’s never too late to obtain a comprehensive and accurate depreciation report for your investment property. Don’t waste the opportunity to gain thousands of dollars in tax deductions. Order your report today, here.
