BMT Tax Depreciation Estimate - Prestige Groupprestigegrp.com.au/wp-content/uploads/2012/07/...2011/09/20 · Australia Wide Service ABN 44 115 282 392 Maximising Property Tax Depreciation

BMT Tax Depreciation Estimate86-110 Trenerry Crescent

ABBOTSFORD, VIC 3067

10 March, 2011

Mr Robert DiCintioPO Box 4213RICHMOND, VIC 3121

86-110 Trenerry Crescent, ABBOTSFORD, VIC 3067 - 154051

Dear Robert,

Please find attached the BMT Tax Depreciation Estimates for the above property detailing thedepreciation and associated tax allowances that may be available to the owner under theIncome Tax Assessment Act 1997 (ITAA97).

This document is intended to provide a guide to the potential depreciation and buildingallowances available from the purchase of the above residential property, facilitating theestimation of the after tax return on the investment over the first 10 full years of ownership.

1.0 Information

The following information was used in the preparation of the schedules:

Ø Written and verbal information provided by Mr Robert DiCintio.

2.0 Depreciation Potential – Plant and Capital Allowance

The purchaser of the property, intending to use it for income producing purposes, is entitled todepreciation including:

Ø Division 40, Depreciation of Plant and Equipment; and

Ø Division 43, Capital Works Allowance (2.5 % pa).

The depreciation of plant and equipment items is based on the diminishing value effective life ratesas published by the commissioner of taxation (TR2009/4).

In the scenario where plant and equipment items are not sold at an agreed value these items willbe depreciated on the basis of a just attribution of the total expenditure (42-65 ITAA97).

3.0 Capital Work Allowance

The special building write off allowance is based on the industry specific eligible dates. If theproperty qualifies for the special building write off, the applicable depreciation rate will be used.Where properties do not qualify for the special building write off allowance, no capital worksallowance will be used.

BMT Tax DepreciationQUANTITY SURVEYORS

Level 50, 120 Collins StreetMelbourne VIC 3001GPO Box 4260Melbourne VIC 3001t 03 9654 2233f 03 9654 2244

e [email protected] www.bmtqs.com.au

Australia Wide Service ABN 44 115 282 392

Maximising Property Tax Depreciation Deductions

mailto:[email protected]

http://www.bmtqs.com.au

The allowance for capital works will be based on the historical cost of construction less non-depreciable items.

4.0 Estimate Calculation

This report is based on a just attribution of the total expenditure to estimate the allowances forplant. The estimates provided are based on the sale price as indicated, as the final purchase priceat this time is not known.

This estimate has been provided for the purpose of informing the investor of the depreciationpotential. Different depreciation returns are available and are influenced by the purchase price ofthe property.

Please note that the first year calculations are based on ownership over a full financial year.

5.0 Disclaimer

This report has been based on very preliminary documentation, and the figures provided should betreated as a guide only.

As documentation improves, BMT Tax Depreciation will be able to provide more accurateestimates of depreciation.

6.0 Conclusion

As can be extracted from the attached tables, the units will obtain maximum depreciationpotential within the first 5 years of ownership.

BMT Tax Depreciation would be pleased to provide a complete detailed tax depreciation reporton any of the units in the above property upon request.

Our results suggest employing a specialist to maximise the various tax allowances has a significanteffect on improving the after tax return.

Should you or the purchaser wish to discuss the contents of this report in more detail, please do nothesitate to contact Tom Plenty of this office.

Yours Sincerely,

BMT Tax Depreciation Pty LtdQuantity Surveyors



Appendix One

BMT Tax Depreciation Estimate86-110 Trenerry Crescent

ABBOTSFORD, VIC 3067



BMT Tax Depreciation Estimates &BMT Tax Depreciation Reports

BMT Tax Depreciation EstimatesBMT Tax Depreciation Estimates ensure that investors are easily able to determine their after-tax cash position if they were to purchase a particular property. Presenting a potential investor with a BMT Tax Depreciation estimate assists the buyer, results in a value added service and often helps with early sales. The report will show the minimum and maximum range of depreciation along with the expected depreciable ‘plant and equipment articles’ within the building and the building write off allowance.

BMT Tax Depreciation ReportsBMT Tax Depreciation Reports are used to claim depreciation deductions when completing your tax return. The report

will provide the basis for maximising claims covering both plant and equipment depreciation and building write off. Many investment property owners remain unaware of the benefits that tax

depreciation provides. There are usually thousands of dollars to be claimed in depreciation deductions on any investment property. BMT Tax Depreciation specialise in maximising

the total depreciation available from a given property under current legislation.

Marketing/Real Estate Agent engages BMT TaxDepreciation to complete a Tax Depreciation Estimate

for a specific development, prior to, or during marketing phase

How the Documents Work

Investor purchases the property

After settlement the purchaser engages BMT TaxDepreciation to complete a Tax Depreciation Report.

This document is offered by BMT Tax Depreciation at adiscounted rate as BMT have knowledge of the property

BMT Tax Depreciation Report contents are used in the purchaser’s tax return preparation

Property Tax Depreciation and Construction Cost Consultants

Estimate of Depreciation ClaimableTypical 1 Bedroom Apartment

86-110 Trenerry Crescent, ABBOTSFORD, VIC 3067Purchase Price

$475,000

MaximumYear Plant &

EquipmentDivision 43 Total

1 5,875 6,453 12,3282 3,741 6,453 10,1943 2,674 6,453 9,1274 2,140 6,453 8,5935 1,930 6,453 8,3836 1,291 6,453 7,7447 1,041 6,453 7,4948 681 6,453 7,1349 454 6,453 6,907

10 311 6,453 6,76411 + 1,512 193,619 195,131

Total $21,650 $258,149 $279,799

Comparison Yr 1-10 (Min & Max)

$0

$1,300

$2,600

$3,900

$5,200

$6,500

$7,800

$9,100

$10,400

$11,700

$13,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum

MinimumYear Plant &


1 4,598 5,050 9,6482 2,928 5,050 7,9783 2,093 5,050 7,1434 1,675 5,050 6,7255 1,510 5,050 6,5606 1,011 5,050 6,0617 815 5,050 5,8658 533 5,050 5,5839 356 5,050 5,406

10 243 5,050 5,29311 + 1,184 151,528 152,712

Total $16,946 $202,028 $218,974

Cumulative Yr 1-10 (Min & Max)

$0

$8,500

$17,000

$25,500

$34,000

$42,500

$51,000

$59,500

$68,000

$76,500

$85,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum

* assumes settlement on 1 July in any given year.

This is an estimate only and should not be applied or acted upon. Depreciation of plant is based on the Diminishing Valuemethod of depreciation applying Low-Value Pooling. The Division 43 Write Off Allowance is calculated using 2.5% or 4%depending on the property type and date of construction. This estimate is based upon legislation in force at the date ofreport production.

This Estimate Cannot Be Used For Taxation Purposes

To discuss the contents of this report please contact Tom Plenty at BMT Tax Depreciation on 03 9654 2233








Estimate of Depreciation ClaimableTypical 1 Bedroom + Study Apartment


$560,000

MaximumYear Plant &


1 5,913 7,427 13,3402 3,757 7,427 11,1843 2,685 7,427 10,1124 2,148 7,427 9,5755 1,933 7,427 9,3606 1,295 7,427 8,7227 1,044 7,427 8,4718 682 7,427 8,1099 460 7,427 7,887

10 313 7,427 7,74011 + 1,534 222,803 224,337

Total $21,764 $297,073 $318,837


$0

$1,400

$2,800

$4,200

$5,600

$7,000

$8,400

$9,800

$11,200

$12,600

$14,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum

MinimumYear Plant &


1 4,628 5,812 10,4402 2,940 5,812 8,7523 2,102 5,812 7,9144 1,681 5,812 7,4935 1,513 5,812 7,3256 1,013 5,812 6,8257 817 5,812 6,6298 534 5,812 6,3469 360 5,812 6,172

10 245 5,812 6,05711 + 1,201 174,368 175,569

Total $17,034 $232,488 $249,522


$0

$9,500

$19,000

$28,500

$38,000

$47,500

$57,000

$66,500

$76,000

$85,500

$95,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum














$605,000

MaximumYear Plant &


1 6,602 8,663 15,2652 4,708 8,663 13,3713 3,322 8,663 11,9854 2,585 8,663 11,2485 2,056 8,663 10,7196 1,628 8,663 10,2917 1,267 8,663 9,9308 833 8,663 9,4969 560 8,663 9,223

10 388 8,663 9,05111 + 2,027 259,891 261,918

Total $25,976 $346,521 $372,497


$0

$1,600

$3,200

$4,800

$6,400

$8,000

$9,600

$11,200

$12,800

$14,400

$16,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum

MinimumYear Plant &


1 5,167 6,780 11,9472 3,685 6,780 10,4653 2,600 6,780 9,3804 2,023 6,780 8,8035 1,609 6,780 8,3896 1,274 6,780 8,0547 992 6,780 7,7728 652 6,780 7,4329 438 6,780 7,218

10 303 6,780 7,08311 + 1,587 203,393 204,980

Total $20,330 $271,193 $291,523


$0

$11,100

$22,200

$33,300

$44,400

$55,500

$66,600

$77,700

$88,800

$99,900

$111,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum














$610,000

MaximumYear Plant &


1 6,454 8,763 15,2172 4,590 8,763 13,3533 3,242 8,763 12,0054 2,524 8,763 11,2875 2,017 8,763 10,7806 1,595 8,763 10,3587 1,242 8,763 10,0058 815 8,763 9,5789 549 8,763 9,312

10 377 8,763 9,14011 + 1,960 262,903 264,863

Total $25,365 $350,533 $375,898


$0

$1,600

$3,200

$4,800

$6,400

$8,000

$9,600

$11,200

$12,800

$14,400

$16,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum

MinimumYear Plant &


1 5,051 6,858 11,9092 3,592 6,858 10,4503 2,537 6,858 9,3954 1,976 6,858 8,8345 1,579 6,858 8,4376 1,248 6,858 8,1067 972 6,858 7,8308 638 6,858 7,4969 429 6,858 7,287

10 295 6,858 7,15311 + 1,534 205,750 207,284

Total $19,851 $274,330 $294,181


$0

$11,200

$22,400

$33,600

$44,800

$56,000

$67,200

$78,400

$89,600

$100,800

$112,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum














$795,000

MaximumYear Plant &


1 7,667 12,793 20,4602 5,889 12,793 18,6823 4,124 12,793 16,9174 3,140 12,793 15,9335 2,453 12,793 15,2466 1,723 12,793 14,5167 1,397 12,793 14,1908 1,158 12,793 13,9519 781 12,793 13,574

10 539 12,793 13,33211 + 2,853 383,786 386,639

Total $31,724 $511,716 $543,440


$0

$2,100

$4,200

$6,300

$8,400

$10,500

$12,600

$14,700

$16,800

$18,900

$21,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum

MinimumYear Plant &


1 6,000 10,012 16,0122 4,609 10,012 14,6213 3,227 10,012 13,2394 2,457 10,012 12,4695 1,920 10,012 11,9326 1,348 10,012 11,3607 1,094 10,012 11,1068 906 10,012 10,9189 611 10,012 10,623

10 422 10,012 10,43411 + 2,233 300,354 302,587

Total $24,827 $400,474 $425,301


$0

$15,700

$31,400

$47,100

$62,800

$78,500

$94,200

$109,900

$125,600

$141,300

$157,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum














$865,000

MaximumYear Plant &


1 7,673 13,754 21,4272 5,878 13,754 19,6323 4,186 13,754 17,9404 3,225 13,754 16,9795 2,544 13,754 16,2986 1,811 13,754 15,5657 1,825 13,754 15,5798 1,195 13,754 14,9499 795 13,754 14,549

10 542 13,754 14,29611 + 2,562 412,625 415,187

Total $32,236 $550,165 $582,401


$0

$2,200

$4,400

$6,600

$8,800

$11,000

$13,200

$15,400

$17,600

$19,800

$22,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum

MinimumYear Plant &


1 6,005 10,764 16,7692 4,600 10,764 15,3643 3,276 10,764 14,0404 2,524 10,764 13,2885 1,991 10,764 12,7556 1,418 10,764 12,1827 1,428 10,764 12,1928 935 10,764 11,6999 622 10,764 11,386

10 424 10,764 11,18811 + 2,005 322,924 324,929

Total $25,228 $430,564 $455,792


$0

$16,800

$33,600

$50,400

$67,200

$84,000

$100,800

$117,600

$134,400

$151,200

$168,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum














$890,000

MaximumYear Plant &


1 8,064 13,783 21,8472 6,209 13,783 19,9923 4,408 13,783 18,1914 3,382 13,783 17,1655 2,655 13,783 16,4386 1,889 13,783 15,6727 1,696 13,783 15,4798 1,323 13,783 15,1069 882 13,783 14,665

10 597 13,783 14,38011 + 2,823 413,441 416,264

Total $33,928 $551,271 $585,199


$0

$2,200

$4,400

$6,600

$8,800

$11,000

$13,200

$15,400

$17,600

$19,800

$22,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum

MinimumYear Plant &


1 6,311 10,787 17,0982 4,859 10,787 15,6463 3,450 10,787 14,2374 2,647 10,787 13,4345 2,078 10,787 12,8656 1,479 10,787 12,2667 1,328 10,787 12,1158 1,035 10,787 11,8229 690 10,787 11,477

10 467 10,787 11,25411 + 2,210 323,563 325,773

Total $26,554 $431,433 $457,987


$0

$16,900

$33,800

$50,700

$67,600

$84,500

$101,400

$118,300

$135,200

$152,100

$169,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum














$990,000

MaximumYear Plant &


1 8,714 14,840 23,5542 6,448 14,840 21,2883 4,599 14,840 19,4394 3,341 14,840 18,1815 2,868 14,840 17,7086 2,044 14,840 16,8847 1,811 14,840 16,6518 1,439 14,840 16,2799 955 14,840 15,795

10 649 14,840 15,48911 + 3,014 445,200 448,214

Total $35,882 $593,600 $629,482


$0

$2,400

$4,800

$7,200

$9,600

$12,000

$14,400

$16,800

$19,200

$21,600

$24,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum

MinimumYear Plant &


1 6,819 11,614 18,4332 5,046 11,614 16,6603 3,599 11,614 15,2134 2,615 11,614 14,2295 2,245 11,614 13,8596 1,599 11,614 13,2137 1,418 11,614 13,0328 1,126 11,614 12,7409 747 11,614 12,361

10 508 11,614 12,12211 + 2,359 348,417 350,776

Total $28,081 $464,557 $492,638


$0

$18,200

$36,400

$54,600

$72,800

$91,000

$109,200

$127,400

$145,600

$163,800

$182,000

1 2 3 4 5 6 7 8 9 10Years

Maximum Minimum










