Capital Gains Tax (CGT) is a form of income tax that a property owner is liable to pay within the financial year of selling their property. When selling a capital asset, shares or real estate, you usually make a capital gain or a capital loss.

In the instance that a property investor is unable to claim Division 40 Plant and Equipment deductions due to the legislative changes, they should be able to claim a capital loss for the decline in value of the assets. This loss value can then be added to the cost base of the property when calculating any capital gain. Hence, the values of the plant and equipment are needed under these circumstances. These are known as Capital Loss Plant and Equipment Depreciation Schedules.

In circumstances where you are unable to claim Division 40 Plant and Equipment, our Tax Depreciation Schedules comes with an additional schedule that calculates the capital loss of plant and equipment, conveniently, for the owner’s accountant to calculate the reduced CGT liability when applicable.