Posts Tagged ‘prime cost method’
Tax Depreciation Rates (ATO) – 2012 Rates for your residential investment property
In previous posts we’ve looked at how effective lives are calculated, how depreciation rates are calculated and the difference between the diminishing value and prime cost methods. As we often get questions about the specific effective lives for residential property, we’ve decided to post the current effective lives here. These effective lives are current at…
Read MoreATO Tax Depreciation Methods – Diminishing Value and Prime Cost
The ATO allows two very different methods of calculating property tax depreciation deductions, the Diminishing Value Method and the Prime Cost Method. Most investors choose the Diminishing Value Method as it will return the greatest amount of deductions over the first few years of ownership. However it’s worth discussing with your accountant, as maximising your…
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