18 Oct Appreciate a Good Depreciate Part II
If you happened to miss Part 1, please refer to Farm Depreciation – The Silver Bullet
Easiest Days Work You Will Ever Do That Can Save You $30k – $1m
Robinson Sewell Depreciation (RSD) specializes in completing ATO compliant farm depreciation reports, capturing all the infrastructure assets that are acquired with the land when you purchase a farm.
Are you currently paying tax?
Have you purchased a farm in the last 5-10 years?
Would you like to reduce the amount of tax that you are paying to the ATO?
Case Study 1
Tim and Marylynne were referred to RSD by their accountant. They run a mixed farming enterprise of winter crops and Angus cattle near Bathurst. The previous 5-6 years had been strong and profitable resulting in all previous tax losses being used. Keen to expand, the couple purchased a farm in the Forbes-Grenfell area for $2.2m.
RSD were asked to complete an ATO compliant tax depreciation report on all assets presented with the farm (machinery sheds, hay sheds, shearing shed, stock yards, silos fencing etc). Total depreciation claimable over the effective life of the assets will be $875,000.
$498,00 was claimable in the first year.
Case Study 2
Craig & Sonya were referred to RSD by their neighbor who had previously completed a depreciation schedule on a recent farm acquisition. In this case Craig & Sonya purchased the farm in May of this year for $673,000 in the Riverina. The new farm had minimal fencing and one old flat bottom Lysaught silo. As with many people, they did not think that it would be worthwhile having a report completed but contacted Michael just to make sure.
Michael assured Craig & Sonya that it would be so they arranged for RSD to complete a farm depreciation report. Total depreciation claimable over the effective life of the assets will be $77,800.
$68,500 was claimable in the first year.