We thought it would be illuminating to take a look at a fairly average Sydney unit, look at some of the key components and the depreciation deductions. Rather than picking a unit with massive deductions and common property galore, we’ve taken a more conservative approach and dispensed the chest beating in favour of an honest look at some typical deductions.
The property in question is the Parc Apartments at 75-81 Park Road, Homebush NSW.
The Parc apartments were completed in late 2014 and consist of 68 apartments over 9 levels with ducted a/c and good quality finishes. What’s interesting is that there’s not particularly a lot of common property with partially exposed levels and no gym or pool. There is secure parking via the basement and most units are around 90sqm internally.
Each unit has an entitlement to claim a percentage of the deductions for the common areas such as the basement, lifts, security and fire systems. This equates to around 1.5% per unit.
Our depreciation schedule on one of the units came up with the following;
1. Unit Specific Plant Assets = $16,298
2. Share of Common Property Plant Assets = $11,868
3. Unit Specific & Common Property Building Structure Share = $353,606
That equated to a total depreciation figure of $381,772 for the unit and importantly for the 2015/2016 financial year, a total depreciation figure of $14,093.
Whilst the deductions certainly didn’t break any records, it was a solid result for the property in question and the client. The client was certainly pleased to be minimising their taxable income by over $59,000 with less than 5 years of total claim.