The details
- Mixed farming operation comprising of intensive agriculture, cash cropping and livestock operations
Undertaking an in-depth tax depreciation assessment resulted in a first-year depreciation claim of $347,254, which boosted the net cash position of the operation by $104,176.
| No Tax Depreciation Claim Applied | Tax Depreciation Claim $347,254 p/a Applied | ||
| Total Annual Income: ($178,688 p/m) | $2,144,264 | Total Annual Income: ($178,688 p/m) | $2,144,264 |
| Total Annual Expenses: | ($985,457) | Total Annual Expenses: | ($985,457) |
| Cash Income minus Expenses | $1,158,807 | Cash Income minus Expenses | $1,158,807 |
| Tax Depreciation Claimed: | $ – | Tax Depreciation Claimed: | ($347,254) |
| Pre-Tax Profit: | $1,158,807 | Pre-Tax Profit: | $811,553 |
| Tax Payable (@30%): | ($347,642) | Tax Payable (@30%): | ($243,466) |
| Net Annual Cash Position: | $811,165 | Net Annual Cash Position: | $915,341 |
| Monthly After Tax Cash Position: | $67,597 | Monthly After Tax Cash Position: | $76,278 |
| The additional tax benefit per annum amounts to $104,176 |
Disclaimer: The tax depreciation amount within this case study relates to the first year claim and will vary depending on the method and asset allocations considered for tax depreciation. It will be different for each case and assessed on the business infrastructure, equipment/chattels and capital expenditure on the property recently