Depreciation schedule was done in Jan 2017- do I have to claim it this tax year?

BMT did my depreciation schedule in Jan 2017.
Due to salary sacrifice, I haven't paid much tax last FY.
Can I delay my depreciation schedule claim to this year to maximise my tax savings?

 

no

 

Actually, sort of.

It's not possible to make it so that there are no deductions for that period. But one way we might be able to defer a few of the deductions is to hold off on putting items into the low value pool (where depreciation is accelerated). If you would like to private message me with your job reference number/property address (my memory may need refreshing!) then I'll look into it for you. Depending on what fit-out items you've got, it might make a reasonable or minuscule difference.

Another possibility is that, if you think you might have an ongoing period where your taxable income is limited (and foresee it increasing in a few years' time), consider using the prime cost method of depreciation. Be warned: once you pick prime cost or diminishing value, you have to stick with it.

 

I say Yes. A few options.

1. Get the schedule revised as Chris@BMT suggests (See the value of asking a QS !!)
2. Use PC method rather than DVM (just consider you are then stuck with PC forever)
3. Choose not to claim the tax deduction. Its not mandatory to claim a tax deduction and the Commr has no powers to amend to include deductions - Only to add income or deny deductions. Bear in mind that the CGT costbase adjustment for Div 43 at the time of a future sale must still occur although no deduction was actually claimed. The CGT rule says the cost base is reduced by Div 43 deductions you could have claimed

 

Thanks Paul. BMT are busy looking at this for me right now.

I was thinking that I could go with PC instead of DVM - in the end both add up to the same deduction amount. I guess it could impact if/when I ever decide to make this IP a PPOR because I won't be able to claim depreciation during those years.