Ryan McLean

4 Comments

  1. Guy
    July 3, 2016 @ 3:03 pm

    hi, can I pro rata a low value pool if I rent a property for say 80% of the year and I occupy it for 20%, so pro rata the 37.5% depreciation at 80% ? what happens if the following year the pro rata is 60% ? thanks

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  2. Will Callaghan
    August 19, 2016 @ 10:03 pm

    Hi Guy,
    The 1st year of the Low Value Pool is calc’d at 18.75%. It does not matter if the property is available for rent for 1 day or 365 days, you still claim the same amount for that year.

    The 2nd year is calc’d at the higher 37.5%. This time -and each year thereafter, you would have to apply the 60% rental period to the final calculation.
    So, let’s days Year 2 @ 37.5% works out to a nice neat $5,000. You would then have to x60% to come up with the allowable amount you can claim. In this case it would be $3,000.
    I hope that helps

    Reply

  3. Luke Smith
    November 10, 2016 @ 11:13 am

    I didn’t realize some companies guaranteed that you will save more money from a depreciation schedule than it costs! I imagine a guarantee like that would make a first-time user of such a service feel much more at ease. It seems like property depreciation prediction, like all things in the world of taxes, is something best left to the experts.

    Reply

  4. Kairi Gainsborough
    November 23, 2016 @ 10:11 am

    Thanks for explaining how tax depreciation works. It makes sense that you shouldn’t have to pay taxes on the initial value of your house when it isn’t worth nearly that much anymore. Becuase everything in the house depreciates at varying rates, it seems like it could be pretty complicated. I might need to get some professional help with this.

    Reply

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