PROPERTY Ally is the property depreciation specialist and will be on site at the Hay Ag and Pastoral Innovation Expo.
Property Ally has been completing depreciation schedules on agricultural, commercial and residential properties for more than 15 years.
If you have purchased or had property transferred in the last 10 years or so, then it is highly likely there are major tax deductions – that is, savings – available to you.
Property Ally breaks the property it up into its relevant categories – land, dwellings and structural improvements, and a full property inspection is carried out to identify all depreciable assets. Improvements on agricultural properties include houses, fencing, gates, ramps, silos, windmills, stock yards, shearing sheds, hay sheds, machinery sheds, water tanks, troughs, water pipes, irrigation equipment and capital works.
A depreciation schedule is developed using the tax effective life of each relevant asset. The deductions from the schedule are included in the profit and loss statement to reduce the taxable income, thus resulting in many dollars saved.
The significant legitimate tax savings will generally be somewhere between 10 per cent and 40pc of the purchase price, depending on improvements, overall price paid for the property.
For example, a southern NSW irrigation property purchased for approximately $580,000 had items claimable that included irrigation channels, sheds and a house, resulting in a total claimable amount of $190,000 and a deduction of $12,972 in the first full year.