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Trying to understand the updated Depreciation Report

Discussion in 'Accounting & Tax' started by EN710, 6th Jul, 2015.

  1. EN710

    EN710 Well-Known Member

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    Ok, maybe a silly question and I know my accountant will sort this out.

    Just want to understand it for my own knowledge.

    IP one got a reno in FY14/15, on the updated report, the Diminishing method got several columns:
    • Effective life
    • Pooled Plant
    • Division 40
    • Division 43
    What are they? 0_0

    Total is only the total for Div 40 and Div 43
     
  2. Depreciator

    Depreciator Moderator Staff Member

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    Yep, your accountant will sort it out, but it doesn't hurt for you to know, too.
    Effective Life is how long the ATO state an Asset will last. Carpet, for instance, has a 10 year Effective Life. An oven has a 12 year one.
    The Effective Life controls the depreciation rate for the Asset.
    Pooled Plant means Assets valued between $300 and $1,000 that have been put into the optional Low Value Pool. It's a quicker way of claiming Assets.
    Division 40 would probably be Assets either valued under $300 and written-off, or valued over $1,000 and not yet in the Low Value Pool.
    Division 43 is the building itself.

    Scott
     
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  3. EN710

    EN710 Well-Known Member

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    Thank you Scott!
     
  4. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Generally three items give deductions....
    1. Low value pool
    2. General Div 40......(1 + 2 are depreciation)
    3. Div 43 - Capital allowance depreciation on building
     
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