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Tax Depreciation For A Mixed Farming Operation Purchased In 2021 For $11.1 Million

Case Study

Rural and Agribusiness Tax Depreciation

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

Acumentis has been servicing similar clients through our network of 45 offices nationally to help reduce tax and improve cash flows for clients.

Region/Area State Type of Property Purchase Price Total Tax Dep Claim
Erragulla Plains WA Cropping Serials $90,600,000 $7,329,297
Tintinara SA Vineyards $18,000,000 $1,123,510
Genoa Vic Cattle Farm $2,030,000 $288,739
Wagga Wagga NSW Sheep/Cropping $8,930,000 $844,885
Stanthorpe Qld Sheep $14,000,000 $3,541,824
Tenant Creek NT Cattle Farm $14,000,000 $3,759,082

 

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Our registered team of professionally certified valuers are experts across commercialresidential and rural and agribusiness property types. We know what depreciable items to look for ensuring that you get a comprehensive ATO approved depreciation schedule prepared by our certified Quantity Surveyors.

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Perth
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Mandurah
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Perth
James Sholdas
Associate Director Valuations
Perth
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Associate Director Valuations
Perth
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Associate Director
Perth
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Director Acumentis Advisory
Perth
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South West WA
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Regional Director
Mandurah
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Regional Director - South West
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Albany
Damien Schifferli
Regional Director - South West WA
Busselton
Nathan King
National Director – Advisory, State Director – WA Operations
Perth
Matthew Shadbolt
Valuer
Canberra
Zac Beveridge
Associate Director
Canberra
Tony Lenord
State Director Commercial - Sydney
Sydney
Marty Creigh
Valuer
Newcastle
Daniel Carr
Valuer
Newcastle
Nathan Jones
Valuer
Lismore & Northern Rivers
James Morrell
Associate Director
Lismore
Angus Cooke
Valuer
Inverell
Tom McDouall
Director - Regional Residential Operations NSW
Newcastle
Heath Craft
Valuer
Albury
Maria Ergos
Client Services Team Leader
Sydney Residential
Gregory Jordan
Valuer
Port Macquarie
Jack Prosser
Senior Valuer
Port Macquarie
Harry Morrow
Senior Valuer
Tamworth
Simon Mandile
Senior Valuer
Sydney
Emmanuel Ergos
Senior Valuer
Sydney
Justine Franklin
Valuer
Albury - Wodonga
Bryan Guest
Regional Director
Coffs Harbour
Amy Frankel
Regional Director
Port Macquarie
Tony Gorman
Director Valuations
Darwin / Perth
Amber Broughton
Valuer
Gold Coast
Adam Purvis
Valuer
Brisbane
June Button
Valuer
Gladstone
Rachel Schloman
Valuer
Brisbane
Lara Watts
Valuer
Bundaberg
Adrian Marks
Valuer
Brisbane
Scott Blanchard
Senior Valuer
Cairns
Dale Rohde
Senior Valuer
Cairns
Sarah Banner
State Director - Residential Operations, QLD
Brisbane
Clancy Miller
Valuer
Townsville
Paul Krause
Senior Valuer
Mackay
Matthew Galvin
Senior Valuer
Toowoomba
Jack Macdonald
Associate Director
Roma
David Hosking
Regional Director
Cairns
Henry Brown
Director
Brisbane
Wayne Airey
Associate Director
Sunshine Coast
Alexandra Doneley
Senior Valuer
Emerald
Geoff Duffield
Director – Family Law & Advisory
Brisbane
Jany Pezard
Director - Valuations
Sunshine Coast
Gareth Turner
Director
Brisbane
Michael Everingham
Valuer
Gold Coast
Lachlan Dunsdon
National Director Rural & Agribusiness
Brisbane
Joe Porter
Senior Valuer
Adelaide
Craig Farley
Valuer
Adelaide
Stephanie Costi
Valuer
Adelaide
Mark Robins
State Director SA
Adelaide
William Simmonds
Valuer
Hobart
Leon Sleiters
Valuer
Hobart
Harry Chapman
Valuer
Launceston
Harry Chapman
Valuer
Launceston
Joe Stansfield
Regional Director - Tasmania (North)
Launceston
David Duffield
Regional Director - Tasmania (South)
Hobart
Alexandra Churches
Regional Director - Victoria
Bendigo
Quentin Churches
Associate Director
Bendigo
Patrick Monaghan
State Director - Regional Operations Victoria
Gippsland
Nick Funnell
National Director - Asset Advisory
Melbourne
Damien Stone
State Director Residential - Victoria
Melbourne
Mitchell Fraser
Senior Valuer
Busselton
Felicity Graham
Senior Valuer
Bunbury
Daniel Horan
Valuer
Perth
Rachel Kendall
Valuer
Mandurah
Michael Sinclair
Valuer
Perth
James Sholdas
Associate Director Valuations
Perth
Tom O’Sullivan
Associate Director Valuations
Perth
Kate Bingham
Associate Director
Perth
Ben Lamers
Director Acumentis Advisory
Perth
Aaron Hughes
Regional Director
South West WA
Scott Robinson
Regional Director
Mandurah
Richard Graham
Regional Director - South West
Bunbury
Mark Eaton
Regional Director
Albany
Damien Schifferli
Regional Director - South West WA
Busselton
Nathan King
National Director – Advisory, State Director – WA Operations
Perth

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