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Millions of Dollars in Depreciation Deductions Available for Developers of St Leonards Apartments

Our NBtax team was engaged to provide a detailed depreciation report for a new $15.9m residential and mixed-use complex in St Leonards, NSW. The property is located amidst a vibrant commercial district on the lower North Shore of Sydney. 

Completed in March 2021, the complex spans seven storeys and is built on an 835sqm site with four levels of basement parking offering 45 car spaces. The building has five levels of residential living comprising 29 apartments including 3 studios, 22 x 1 bedrooms, 3 x 2 bedrooms, and 1 x 3 bedrooms.

Our NBtax team calculated the depreciation values for the 29 apartments based on the construction costs for the build. They found a total of $646,250 in depreciation deductions for both the Building, and Plant & Equipment Assets (Divisions 43 & 40), during the first full financial year. 

Over the next 40 years, our clients can claim a total of $15,852,202 in depreciation deductions. 

Typical deductions itemised in our depreciation schedule included: 

  • Air conditioning units
  • Carpets
  • Furniture and fittings
  • Kitchen equipment such as dishwashers, range hoods, freezer, microwaves, ovens, refrigerators, stoves
  • Laundry such as washing machines and dryers
  • Hot water systems
  • Fire control and alarm systems 
  • Lifts
  • Vehicle control equipment
  • Ventilation fans

This is an incredible result for our clients and our residential NBtax team. 

The building also includes offices and a restaurant on the ground floor. Our Commercial Tax team completed the depreciation reports for mixed use component. 

If you own investment properties, our experienced Quantity Surveyors can prepare comprehensive and accurate depreciation reports to enable you to claim significant deductions on your taxes. To find out more contact us here.