Q S D You acquire a commercial investment property with an interest only loan of $1.100.000 at 3% per annum interest. Payments are made annually. Construction costs were $250,000, with a depreciation allowance of 4% per annum. It is after 1997, so all building depreciation allowances taken during the holding period must be deducted from the cost base when calculating Capital Gains Tax. The vendor and you have agreed that the purchase would include an air handling plant worth $5,000 at the time of sale, with an expected useful remaining life of 5 years. Your accountant says it would be wise to use prime cost (straight line) depreciation. Calculate the total amount of tax deductions you qualify for at the end of the first year. (Must include workings and express as whole number) q n Q S D You acquire a commercial investment property with an interest only loan of $1.100.000 at 3% per annum interest. Payments are made annually. Construction costs were $250,000, with a depreciation allowance of 4% per annum. It is after 1997, so all building depreciation allowances taken during the holding period must be deducted from the cost base when calculating Capital Gains Tax. The vendor and you have agreed that the purchase would include an air handling plant worth $5,000 at the time of sale, with an expected useful remaining life of 5 years. Your accountant says it would be wise to use prime cost (straight line) depreciation. Calculate the total amount of tax deductions you qualify for at the end of the first year. (Must include workings and express as whole number) q n