Thrifty tax reports include both methods available for depreciation where division 40 can be claimed:
• Diminishing Value
• Prime Cost
You can use either method of depreciation, however, you are unable to switch methods once you have begun claiming depreciation. You must stick to the method chosen. Our schedules reveal the two elements between division 40 and division 43. The ‘total depreciation’ column contains the total amount of depreciation you are eligible to claim for each financial year that you used to property for investment purposes.
Please note that these methods of depreciation only apply where your property is eligible to claim division 40. If you are not eligible, a capital works schedule will be provided. Click here to read more about why may not be able to claim division 40.
Thrifty tax is an Australian owned quantity surveying company which specialises in tax depreciation. Our vision is to provide high-returning, ato compliant tax depreciation schedules for property investors at affordable prices.