To get it into a rental worksheet on the tax form the user has to link it under Capital Work section.
Need a Depreciation Report for a Rental Property? Click here
Be sure to configure first the depreciation settings, learn more.
Including Depreciation in Individual Tax Return Rental Properties
This video demonstrates methods for Division 40 and Division 43 assets (Capital works) and their relevant depreciation configuration.
Get Started
Make sure to complete the following information to avoid error in the forms.
To Add ITR Form
In your Client window, just add "Forms" and choose "ITR Individual Tax Return". In this example, we will be working for ITR2018.
Create & Prefill
Select "Year".
"Lodgement Date" is automatic date from ATO, but you can also manage to change it if necessary.
It will navigate you in this window, an option to "Import Financial" or just "Skip this Step". For this example, just click "Skip this Test" or "Continue"
Financial image
Make sure to turn-on financial image "Rentals" to make this happen.
Go to "Forms" and click the four little squares and turn-on "Rentals", then "Save"
Before you can add an Asset, you have to set "Depreciation Date"
Go to (client) "Settings", click "Depreciation"
Note : "Depreciation date" should be the First month of the Year. ie. 1 July 2017 - 30 June 2018. Depreciation date is 1 July 2017
Go back to "Forms" "ITR", under the "Income" tab you will see "Rent" that could validate you've turned-on the financial picture.
Creating "Group Asset" for Capital Works Rental
Go to "Tools" and choose "Depreciation"
Click "Add"
From the upper right section you can also select "Add"
Make sure to fill the details correctly, you can choose appropriately from the drop-down options for every box. (exactly as you see below)
Name: (you can name your group whatever you like) Category: Rental properties Type: Other Property Improvements" or "Land & Buildings" or "Leasehold Improvements" (whichever applicable)
*To avoid error, set-up exactly as you see below.
Adding Asset for Capital work rentals
After you added the Asset Group, you may now "Add" your Asset
You can also click "+New Asset" located via upper right
In this Example we will add- "Wall" with the purchase cost of $200 bought on the 20 October 2017.
Then click "Save"
Summary Report of the Asset
To Check the Report, go to "Reports" and select "All"
Be mindful of setting the dates in "Start date" and "End date". In this case, we are working for ITR2018.
Viewing ITR Report and Adding Depreciation to Rental
Go to "Forms"
Select your ITR Form
Click the tab "Income", and "Rent".
"Add" the Property.
Fill the information -
Scroll over to the Form where you can see 'Capital works deduction", open the section and click Add button. A depreciation worksheet will be created.
Using search box you can select a Depreciation Group you want to associate with rental or input data manually.
Upon choosing Depreciation Group, data will be automatically filled.
Notice that "Decline in value" is the same value as to the figure in the "Depreciation" that has been processed.
Fill any information from the form,.
Click "Validate" to find any error in your form.
If the form is ready click 'Complete".
Other Related Article:
Need a Depreciation Report for a Rental Property? Click here
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