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BMT Tax Depreciation EstimateCrayfish Street
MOUNTAIN CREEK, QLD 4557
29 February, 2012
Investor Property BirtinyaLevel 1 20 Innovation ParkwayBIRTINYA, QLD 4575
Crayfish Street, MOUNTAIN CREEK, QLD 4557 - 190447
Dear Sir/Madam,
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 Investor Property Birtinya.
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 7, 320 Adelaide StreetBrisbane QLD 4001GPO Box 3229Brisbane QLD 4001t 07 3221 9922f 07 3221 9933
e [email protected] www.bmtqs.com.au
Australia Wide Service ABN 44 115 282 392
Maximising Property Tax Depreciation Deductions
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 Brendan Farrugia of this office.
Yours Sincerely,
BMT Tax Depreciation Pty LtdQuantity Surveyors
BMT Tax DepreciationQUANTITY SURVEYORS
Maximising Property Tax Depreciation Deductions
Appendix One
BMT Tax Depreciation EstimateCrayfish Street
MOUNTAIN CREEK, QLD 4557
BMT Tax DepreciationQUANTITY SURVEYORS
Maximising Property Tax Depreciation Deductions
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 Claimable2 Bedroom Unit - Type B2
Crayfish Street, MOUNTAIN CREEK, QLD 4557
MaximumYear Plant &
EquipmentDivision 43 Total
1 6,387 5,584 11,9712 5,729 5,584 11,3133 4,077 5,584 9,6614 3,134 5,584 8,7185 2,475 5,584 8,0596 1,756 5,584 7,3407 1,533 5,584 7,1178 1,303 5,584 6,8879 1,058 5,584 6,642
10 660 5,584 6,24411 + 1,096 167,511 168,607
Total $29,208 $223,351 $252,559
Comparison Yr 1-10 (Min & Max)
$0
$1,200
$2,400
$3,600
$4,800
$6,000
$7,200
$8,400
$9,600
$10,800
$12,000
1 2 3 4 5 6 7 8 9 10Years
Maximum Minimum
MinimumYear Plant &
EquipmentDivision 43 Total
1 4,999 4,370 9,3692 4,484 4,370 8,8543 3,191 4,370 7,5614 2,453 4,370 6,8235 1,937 4,370 6,3076 1,374 4,370 5,7447 1,200 4,370 5,5708 1,020 4,370 5,3909 828 4,370 5,198
10 517 4,370 4,88711 + 858 131,096 131,954
Total $22,861 $174,796 $197,657
Cumulative Yr 1-10 (Min & Max)
$0
$8,400
$16,800
$25,200
$33,600
$42,000
$50,400
$58,800
$67,200
$75,600
$84,000
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 Brendan Farrugia at BMT Tax Depreciation on 07 3221 9922
BMT Tax DepreciationQUANTITY SURVEYORS
Level 7, 320 Adelaide StreetBrisbane QLD 4001GPO Box 3229Brisbane QLD 4001t 07 3221 9922f 07 3221 9933
e [email protected] www.bmtqs.com.au
Australia Wide Service ABN 44 115 282 392
Maximising Property Tax Depreciation Deductions
Estimate of Depreciation Claimable2 Bedroom Unit - Type A2
Crayfish Street, MOUNTAIN CREEK, QLD 4557
MaximumYear Plant &
EquipmentDivision 43 Total
1 6,291 5,507 11,7982 5,626 5,507 11,1333 4,003 5,507 9,5104 3,081 5,507 8,5885 2,436 5,507 7,9436 1,726 5,507 7,2337 1,510 5,507 7,0178 1,287 5,507 6,7949 1,035 5,507 6,542
10 646 5,507 6,15311 + 1,074 165,210 166,284
Total $28,715 $220,280 $248,995
Comparison Yr 1-10 (Min & Max)
$0
$1,200
$2,400
$3,600
$4,800
$6,000
$7,200
$8,400
$9,600
$10,800
$12,000
1 2 3 4 5 6 7 8 9 10Years
Maximum Minimum
MinimumYear Plant &
EquipmentDivision 43 Total
1 4,923 4,310 9,2332 4,403 4,310 8,7133 3,133 4,310 7,4434 2,411 4,310 6,7215 1,906 4,310 6,2166 1,351 4,310 5,6617 1,182 4,310 5,4928 1,007 4,310 5,3179 810 4,310 5,120
10 506 4,310 4,81611 + 841 129,295 130,136
Total $22,473 $172,395 $194,868
Cumulative Yr 1-10 (Min & Max)
$0
$8,300
$16,600
$24,900
$33,200
$41,500
$49,800
$58,100
$66,400
$74,700
$83,000
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 Brendan Farrugia at BMT Tax Depreciation on 07 3221 9922
BMT Tax DepreciationQUANTITY SURVEYORS
Level 7, 320 Adelaide StreetBrisbane QLD 4001GPO Box 3229Brisbane QLD 4001t 07 3221 9922f 07 3221 9933
e [email protected] www.bmtqs.com.au
Australia Wide Service ABN 44 115 282 392
Maximising Property Tax Depreciation Deductions
Estimate of Depreciation Claimable3 Bedroom Unit - Type A3
Crayfish Street, MOUNTAIN CREEK, QLD 4557
MaximumYear Plant &
EquipmentDivision 43 Total
1 6,316 5,625 11,9412 5,650 5,625 11,2753 4,020 5,625 9,6454 3,095 5,625 8,7205 2,446 5,625 8,0716 1,734 5,625 7,3597 1,517 5,625 7,1428 1,291 5,625 6,9169 1,042 5,625 6,667
10 651 5,625 6,27611 + 1,081 168,738 169,819
Total $28,843 $224,988 $253,831
Comparison Yr 1-10 (Min & Max)
$0
$1,200
$2,400
$3,600
$4,800
$6,000
$7,200
$8,400
$9,600
$10,800
$12,000
1 2 3 4 5 6 7 8 9 10Years
Maximum Minimum
MinimumYear Plant &
EquipmentDivision 43 Total
1 4,943 4,402 9,3452 4,422 4,402 8,8243 3,146 4,402 7,5484 2,422 4,402 6,8245 1,914 4,402 6,3166 1,357 4,402 5,7597 1,187 4,402 5,5898 1,011 4,402 5,4139 815 4,402 5,217
10 509 4,402 4,91111 + 846 132,056 132,902
Total $22,572 $176,076 $198,648
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 Brendan Farrugia at BMT Tax Depreciation on 07 3221 9922
BMT Tax DepreciationQUANTITY SURVEYORS
Level 7, 320 Adelaide StreetBrisbane QLD 4001GPO Box 3229Brisbane QLD 4001t 07 3221 9922f 07 3221 9933
e [email protected] www.bmtqs.com.au
Australia Wide Service ABN 44 115 282 392
Maximising Property Tax Depreciation Deductions
Estimate of Depreciation Claimable3 Bedroom Unit - Type B3
Crayfish Street, MOUNTAIN CREEK, QLD 4557
MaximumYear Plant &
EquipmentDivision 43 Total
1 6,446 5,732 12,1782 5,798 5,732 11,5303 4,124 5,732 9,8564 3,168 5,732 8,9005 2,498 5,732 8,2306 1,773 5,732 7,5057 1,547 5,732 7,2798 1,312 5,732 7,0449 1,068 5,732 6,800
10 667 5,732 6,39911 + 1,110 171,946 173,056
Total $29,511 $229,266 $258,777
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 &
EquipmentDivision 43 Total
1 5,045 4,486 9,5312 4,538 4,486 9,0243 3,227 4,486 7,7134 2,480 4,486 6,9665 1,955 4,486 6,4416 1,388 4,486 5,8747 1,211 4,486 5,6978 1,027 4,486 5,5139 836 4,486 5,322
10 522 4,486 5,00811 + 869 134,566 135,435
Total $23,098 $179,426 $202,524
Cumulative Yr 1-10 (Min & Max)
$0
$8,600
$17,200
$25,800
$34,400
$43,000
$51,600
$60,200
$68,800
$77,400
$86,000
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 Brendan Farrugia at BMT Tax Depreciation on 07 3221 9922
BMT Tax DepreciationQUANTITY SURVEYORS
Level 7, 320 Adelaide StreetBrisbane QLD 4001GPO Box 3229Brisbane QLD 4001t 07 3221 9922f 07 3221 9933
e [email protected] www.bmtqs.com.au
Australia Wide Service ABN 44 115 282 392
Maximising Property Tax Depreciation Deductions