Buildings can be written-off and the Assets (fixtures and fittings) in them can be depreciated. Buildings are written off slowly, and Assets more quickly. The main confusion lies between what is considered part of the building, and what is an Asset. When the ATO look at a Depreciation Schedule in an audit, the first thing they look at is the list of Assets. They can spot a dud Schedule in about 30 seconds. So can we – and we see them often. Many clients assume that kitchen cupboards, for example, would be an Asset. The ATO see them as part of the building. Interestingly, there are people who do Depreciation Schedules who also get this mixed up. And remember, when you commission a Depreciation Schedule, pay for it, take delivery of, and use it, you are accepting responsibility for the accuracy of it. There are over 1,500 items on the ATO Asset list, and the list does change occasionally, but below are some common ones:
|
ASSET |
BUILDING |
| Above ground swimming pools | Built in kitchen cupboards |
| Air conditioning units | Clothes hoists |
| Carpets, vinyl, linoleum & other floor coverings | Door and window fittings |
| Curtains | Driveways and paths |
| Electronic security systems | Electrical wiring |
| Furniture & fittings | Fencing and retaining walls |
| Heaters | Floor and wall tiles |
| Hot water systems | Garages and non-portable sheds |
| Lawn mowers | In ground swimming pools, saunas and spas |
| Microwave ovens | Plumbing and gas fittings |
| Radios | Reticulation piping |
| Refrigerators | Roller door shutters |
| Reticulation pumps & timers | Roof top ventilators & sky lights |
| Roller door motors | Permanently fixed security doors and screens |
| Solar water heaters | Sinks tubs & baths |
| Stoves | Wash basins and toilet pans |
| Swimming pool filtration & cleaning systems | |
| Synthetic lawn | |
| Television sets | |
| Video recorders | |
| Washing machines |
To find out how Depreciator represents genuine value, call us NOW on 1300 66 00 33 or email us at info@depreciator.com.au.
