Property Depreciation Schedules
Washington Brown - Property Depreciation Experts
Washington Brown is one of Australia's leading Quantity Surveying firms. We specialise in the preparation of comprehensive depreciation schedules that maximise tax savings on your investment property. Come tax time, you simply present this report to the accountant completing your tax return.
Whether you're a major developer or a small-scale residential investor, our focus is equally detailed and our aim crystal clear: to ensure you obtain every last cent of depreciation allowance you're legally entitled to. And that means more money in your pocket.
Why use Washington Brown to prepare my depreciation report?
First of all - we guarantee you'll save at least twice our fee in the first 12 months - or your report will be free. So you have nothing to lose and plenty of tax deductions to gain.
With offices all around Australia, we undertake to inspect your property within two weeks of the appointment being booked - a commitment that leads the industry in client service.
As appointees of major banks like the Commonwealth, Suncorp and St. George, we have access to real historical construction cost and planning data that only panel members can utilise.
We are members of the Australian Institute of Quantity Surveyors. To find out if your QS firm is a member of the Institute, check The Australian Institute of Quantity Surveyors (AIQS) website.
As industry leaders for more than 30 years, we boast an extensive client list including Meriton, Valad Property and Walker Corporation. This is testament to our expertise and ability to provide real tax savings.
We prepare more than 10,500 reports annually, delivering $1.5 billion in depreciation savings each year.
It's our winning combination of accounting experience; construction industry knowledge; and a detailed understanding of property related tax law that ensures you will receive the maximum tax deductions possible.
What is Property Depreciation?
Just like you claim wear and tear on a car purchased for income producing purposes, you can also claim the depreciation of your investment property against your taxable income.
There are two types of allowances available: depreciation on Plant and Equipment, and depreciation on Building Allowance.
Plant and Equipment refers to items within the building like ovens, dishwashers, carpet & blinds etc. Building Allowance refers to construction costs of the building itself, such as concrete and brickwork. Both these costs can be offset against your assessable income.
Click here for a list of depreciable items and capital works deductions.
So how does a Depreciation Schedule help me?
Simple. A depreciation schedule will help you pay less tax. The amount the depreciation schedule says you claim effectively reduces your taxable income.
Depreciation is known as a "non-cash deduction" because it's the ONLY deduction that you don't have pay for on an ongoing basis – the deductions are in-built within the purchase price of your property.
How much will my Property Depreciation schedule cost?
The cost of preparing a tax depreciation schedule varies according to the type of property you've purchased, location, size and numerous other factors.
The cost of depreciation schedules are individually quoted and fees are 100% tax deductible.
Obtain an online quote today by clicking our online quote button
How much will I save?
Each property is different and many varying factors must be considered when preparing a property depreciation schedule. With this in mind, we have launched the Washington Brown Depreciation Calculator to give you an estimate of potential deductions.
Does Washington Brown offer a guarantee?
Absolutely. We promise to save you twice our fee in the first year or the report will be free. This guarantee is based on the tax deduction calculated 12 months from your settlement date.
Will you need to inspect my property?
The Australian Institute of Quantity Surveyors (AIQS) Code of Practice stipulates that site inspections are necessary to satisfy ATO requirements.
At Washington Brown, our trained quantity surveyors ensure all depreciable items are noted and photographed. This guarantees you won't miss out on any deductions. The documentation can then be used as evidence in the event of an audit.
How long will it take to complete my schedule?
Your depreciation schedule will take approximately 2-3 weeks to complete, as long as we can inspect your property without delay. In some cases, we can offer priority service at an additional charge.
Is my property too old to claim Property Depreciation?
The simple answer is no. If your residential property was built after the 16th of September 1987 you will be able to claim both Building Allowance and Plant and Equipment. If construction on your property commenced prior to this date, you can only claim depreciation on Plant and Equipment (i.e. carpet, blinds, ovens etc). But it will still be worthwhile.
Commercial and industrial properties are subject to varying cut off dates. Click here for more information.
My property is renovated. Can I still claim?
Yes. We will need to know how much you spent on renovations. This is an ATO obligation. If the previous owner completed the renovations you are STILL entitled to claim depreciation. In either case, where the cost of renovation is unknown, we are fully qualified to make that estimation.
I bought my property three years ago. Can I still make a claim?
Yes you can. Your accountant can amend your previous tax returns up to 2 years back. There are some exceptions so please contact your tax agent or the ATO for clarification.
Shouldn't my accountant prepare this report?
If your residential property was built after 1985 your accountant is not allowed to estimate the construction costs. Tax Ruling 97/25 issue by the Australian Taxation Office (ATO) has identified Quantity Surveyors as properly qualified to make the appropriate estimate of the construction costs, where those costs are unknown.
Real estate agents, Property Managers, Accountants and Valuers are not allowed to make this estimate.
Chief Executive Officer of the Australian Institute of Quantity Surveyors (AIQS), Terry Aulich, advises that, whereas accountants can offer advice around other aspects of tax depreciation, construction costs and property depreciation are highly technical domains in their own right.
How will I receive my report?
We will email you a copy of the report and your accountant if you wish. If you wish to receive a hard-copy additional fees will apply.
Can you claim depreciation on an overseas property?
No matter where your property is in the world, you can claim depreciation if you are an Australian tax payer. We have serviced such countries as New Zealand, USA, Asia, UK & Europe.