Where to put "depreciating assets"?

Discussion in 'Accounting & Tax' started by htopg, 27th Oct, 2020.

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  1. htopg

    htopg Well-Known Member

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    I did a renovation prior to 2017, and I got a depreciation schedule for my IP.

    For 2019-2020 financial year, I have the following 3 values:
    Depreciating Assets - $1216.00
    Low Value Pool - $1219.92
    Building Allowance - $1996.35

    When I checked the tax return forms, I can only find "21 Rent - Capital works deductions [F]" in "Tax return for individuals supplement" form,
    and "Deductions - D6 Low value pool deduction" in the "Tax return for individuals" form but I am not able to find anywhere to fill in the "Depreciating Assets".

    Do I just put it in "21 Rent - Other rental deductions" in "Tax return for individuals supplement" form?

    Thanks in advance
     
    Last edited: 27th Oct, 2020
  2. Mike A

    Mike A Well-Known Member

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    no
     
    Paul@PAS likes this.
  3. htopg

    htopg Well-Known Member

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    And?

    1) depreciating assets is gone forever for the rest of the depreciation schedule
    OR
    2) put it somewhere else, where?
    OR
    3) add it to the CGT cost base
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    This is why tax advisors are so busy. Based on the OP post i cant advise further. There is something not right with the question
     
  5. htopg

    htopg Well-Known Member

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    Since the tax advisors are busy at the moment, I decided to ring ATO about this.
    ATO consultants are very busy too and they told me that they are not trained to answer this question and they needed to talk to their supervisors.
    After 2+ hours on the phone, finally I got the answer that I can put that in 21 Rent - Other rental deductions" in "Tax return for individuals supplement" form.

    So YES, I have answered my own question by calling ATO and being on the call for 2+ hours.
    Hopefully this will help members who have same stupid question like me :)
     
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Thats not correct. Item 21 is correct but not "other rental deductions"'. Capital allowances in the rental information refer to Div 40 deductions. And to confuse everyone the label capital works deductions refers to Div 43. One is label F (Capital works) and the other U (capital allowances = depreciation) in MyTax.

    And deductions for depreciation from pooled assets would be claimed at D6.....

    If you lump these under "other" deductions you could expect a query as to why the other deductions are so high. Tip - use several lines of "other deductions" with editing and the granual detail will avert likley queries as the ATO will have a breakdown of "other".
     
  7. htopg

    htopg Well-Known Member

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    Thanks for the tips for the electronic tax return.

    Old schoolers who use paper tax return forms can only put a large number in "Other rental deductions"

    By the way, this question is from my old schooler friend who still prefers using paper tax return form.

    My answer to my old school friend is
    Depreciating Assets - $1216.00 ---> add this with all other rental expenses and put in 21 Rent - Other rental deductions in supplement tax return form for the investment property.
    Low Value Pool - $1219.92 ---> add this with other low value pools and put in D6 in main tax return form.
    Building Allowance - $1996.35 ---> put this in 21 Rent - Capital work deductions [F] in supplement tax return form for the investment property.
     
  8. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Why would you use paper ? 10 years ago this was largely discontinued and a return can be completed online in no time. And is processed 4 times faster. Simple fields get rejected and can be returned. The ATO recently proposed a fee for paper lodgement and I agree its like writing with a quilll or chiselling stone. There is a discussion paper this could be refused soon so that "lodge" will mean a electronic basis..

    I recently had a person approach me wanting me to lodge paper. They actually wanted me to prepare it and give to them to lodge as they could not get it right. I was confused and wanted no part. We are prohibited and tax agents who do this can be deregistered as we MUST lodge electronically as it validates errors prior to lodgement. It costs the ATO a massive amount to rekey paper lodgements. The ATO are becoming paperless.
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    If you have to pay extra tax, paper could give you a few extra weeks of the cash in your offset?
     

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