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 cannot 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 you used for property for investment purposes.
Please note that these depreciation methods only apply where your property can claim division 40. If you are not eligible, a capital works schedule will be provided.