How Form 4797 Depreciation 2022-2023

Instructions and Help about How Form 4797 Depreciation

Welcome to Washington Brown today we're going to practice what we preach I'm going to show you how we depreciated our own commercial property hi I'm Tyron Hyde from Washington brown and when I first bought this property in the Sydney CBD two years ago it looked like this it was ugly rundown in desperate need of some TLC but the location in the heart of the city was perfect so I got a designer to create a new floor plan and hired a builder to carry out the work it was a substantial feed out including new paint carpet workstations and petitions we even installed a new kitchen in reception area at the end of the project the Builder ghost of tax invoice for $200,000 now I've seen situations where owners take the fit-out costs and multiply that by two and a half percent per annum that's the rate at which you can claim general fit-out costs now if I did that based upon our $200,000 video but only be able to claim five thousand dollars of tax depreciation code instead I ask the Builder to break down the cost relative to the appropriate trades like carpet air-conditioning work stations etc we did a portion part of the builders cost such as management fees to each of those trades and guess what our depreciation the first year alone was $35,000 not five now that's where knowing the construction cost and tax law together can make the world of difference so there you have it from this to this yes it was expensive but being able to claim for $35,000 in depreciation in one year alone was a significant boost that's all from this qsr corner I'm Tyron Hyde from Washington round see you next time and if you like...