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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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Nathan King
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Marty Creigh
Valuer
Newcastle
Daniel Carr
Valuer
Newcastle
Tom McDouall
State Director - Regional Operations (South)
Newcastle
Heath Craft
Senior Valuer
Albury
Maria Ergos
Client Services Team Leader
Sydney Residential
Gregory Jordan
Valuer
Port Macquarie
Harry Morrow
Senior Valuer
Tamworth
Simon Mandile
Senior Valuer
Sydney
Emmanuel Ergos
Senior Valuer
Sydney
Justine Franklin
Associate Director
Albury - Wodonga
Bryan Guest
State Director NSW - Projects, Infrastructure & Acquisition
Coffs Harbour
Amy Frankel
Regional Director
Port Macquarie
Amber Broughton
Valuer
Gold Coast
Adam Purvis
Valuer
Brisbane
June Button
Senior Valuer
Gladstone
Clancy Miller
Valuer
Townsville
Matthew Galvin
Associate Director
Toowoomba
Henry Brown
Director
Brisbane
Wayne Airey
Associate Director
Sunshine Coast
Alexandra Doneley
Senior Valuer
Emerald
Jany Pezard
Director - Valuations
Sunshine Coast
Michael Everingham
Valuer
Gold Coast
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
Curtis Borszeky
Senior Valuer
Perth
Mitchell Fraser
Senior Valuer
Bunbury
Felicity Graham
Senior Valuer
Bunbury
Daniel Horan
Valuer
Perth
James Sholdas
Associate Director Valuations
Perth
Tom O’Sullivan
Associate Director Valuations
Perth
Ben Lamers
Director Acumentis Advisory
Perth
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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