Tax Depreciation- Split Ownership Reports Explained
We have adapted our schedules to suit the needs of our clients. This includes offering split reports where there are multiple owners of a particular property. The split report increases the immediate write-off and low-value pooling amounts claimable by each owner, enabling the owners to maximise their share of tax depreciation.
Allow us to explain. In the case where there is just one owner, they can claim an immediate write-off for assets with an opening value of $300 or less. However, when an investment property is co-owned by two parties with a 50:50 ownership, a split report allows the owners to each claim an instant write-off for items less than $600 in total value. This is because after the split, the opening value for these assets fall below the $300 limit.
The same holds true for low-value pooling. Where an owner’s interest in an asset is less than $1,000, these items qualify to be placed in a low value pool and they can be claimed at an increased rate. In a situation where an ownership is split 50:50, the owners will qualify to pool assets costing less than $2,000 in original value to the low-value pool.
We want you to get the most out of your investment property. A shared ownership should not inhibit you from maximising your claim. If you are curious to know more, read our post: How to Apply for Tax Depreciation.