Tax Depreciation Schedules |
Main > Depreciation |
All the deductions that are made on the Schedule are established in accordance with the ATO and current tax rulings. Once the site evaluation is completed and all relevant deductions are recorded, they are then used to offset the owners’ taxable income.
For example, If you earn $100,000 a year from your employer and an additional $35,000 a year from two rental properties, your depreciation on both properties in any given year may be around $24,000. Taking into account additional negative gearing factors such as interest on mortgage, repair and maintenance, your adjusted taxable income is:
Income |
$100,000 + $35,000 (salary + rental income) |
Less |
$24,000 (non cash depreciable deductions) |
Less |
$ 37,500 (cash deductions for interest on mortgage) |
Total |
$73,500 (adjusted taxable income) |
Less $24,000 from Depreciation Schedule reduces the clients’ taxable income by $24,000.
