Depreciation can result in saving thousands of dollars each year.
?Research shows that 80 per cent of investors are failing to take full advantage of property depreciation and are missing out on thousands of dollars in their pockets,? said Bradley Beer, director of BMT Tax Depreciation. ?The investor does not need to spend money to claim it.?
As assets age they wear out and so depreciate in value. The Australian Taxation Office (ATO) allows this depreciation as a tax deduction.
Depreciation can be obtained by anyone who obtains income from their property, plant or equipment. With regards to property a building’s structure can be claimed via capital works allowances.
The depreciation deduction available on each item is calculated using the effective life as set by the ATO.
Some plant and equipment depreciable items commonly found both on quarry sites can include:
? Excavators, graders, wheel loaders, dozers and cranes.
? Crushers, screening assets, feeders, grinding mills and conveyors.
? Control systems, compressors, jigs, storage tanks, thickening assets, pipes and pumps.
? Fencing, boom gates and portable buildings.
More detailed information will be available in the next issue of Quarry Magazine.
Source: BMT Tax Depreciation