What is Property Depreciation?
Property depreciation allows you to claim a tax deduction for the wear and tear over time on any old or new investment property. It allows you to claim internal items like ovens and carpets (Plant and Equipment) and on the construction costs of the building itself, e.g. concrete and brickwork (Building Allowance).
As with any tax deduction, property depreciation basically reduces your taxable income. That means more money in your pocket to reinvest in your property or to spend on yourself or your family.
How does a Depreciation Schedule help me?
A depreciation schedule is a comprehensive report that helps you pay less in tax. The amount the depreciation schedule says you can claim effectively reduces your taxable income because it’s taking into account how much it costs you to own and maintain the property.
While you may be used to claiming back on such items as council rates where you have paid money towards an item or service, depreciation is a “non-cash deduction” because it’s the ONLY deduction that you don’t have to pay for on an ongoing basis.
Get a FREE Depreciation quote online and find out how much you could be saving!
Why should I choose Washington Brown to prepare my Depreciation Report?
Here are six great reasons to choose Washington Brown:
- We are the property depreciation experts and have been recognised as industry leaders for nearly 40 years
- Guaranteed maximum depreciation every time
- Multi award winner and trusted by the industry’s largest entities including the Commonwealth Bank and Lend Lease
- Depreciation schedules with a 40 year forecast, compared with as little as five from some competitors
- 14 Day Turnaround Guarantee – report in 14 days or it's free
- Upside Only Guarantee offers twice our fee in deductions within the first 12 months of settlement or the report is free.
How much will I save?
Each property is different and many varying factors must be considered when preparing a property depreciation schedule. However, the Washington Brown Depreciation Calculator will give you a good indication of potential deductions.
How much will my Property Depreciation Report cost me?
The cost of preparing a tax depreciation schedule varies according to the type, location and size of your property. However, Washington Brown guarantees twice our fee in deductions within the first 12 months after settlement or the report is free. In other words, you double your money or you pay nothing. Furthermore, the depreciation schedule fees are 100% tax deductible.
How accurate are your Depreciation Reports?
Washington Brown has nearly 40 years experience in the industry. As trusted appointees of major banks like the Commonwealth, Suncorp and St. George, we have access to real historical construction cost and planning data only panel members can obtain. In addition, our digitally powered quality assurance process - the TAXMAX500™ − evaluates every property across over 500 variables, and is constantly updated as Australian Taxation Office (ATO) policies change. That guarantees you maximum returns.
Does Washington Brown offer a guarantee?
We are so confident about the quality of our depreciation schedules that we guarantee twice our fee in deductions within the first 12 months after settlement or the report is free. In other words, you double your money or you pay nothing.
Will you need to inspect my property?
Site inspections are necessary to satisfy Australian Taxation Office (ATO) requirements. Our trained quantity surveyors ensure all depreciable items are noted and photographed for deductions and also as evidence in the event of an audit.
Call today to schedule an appointment!
How long will it take to complete my schedule?
We pride ourselves on our efficient and friendly customer service. With offices all around Australia, we undertake to inspect your property within two weeks of the appointment being booked, which is a far better response time than other companies offer. We also have a 14 Day Turnaround Guarantee − on receiving all required information and inspection details, you’ll have a final report on your investment property in fourteen days or we’ll reduce the fee by 50%.
Is my property too old to claim depreciation?
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.).
Commercial and industrial properties are subject to varying cut off dates. Contact us for more information.
Can I still claim on a renovated property?
Yes and it is useful to know how much you spent on renovations. If the renovations were completed by a previous owner, 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 claim?
Yes you can. Your accountant can amend your previous tax returns up to two years back. There are some exceptions so please contact your tax agent or the Australian Taxation Office (ATO) for clarification. After you speak with your tax professional, you’ll need a depreciation schedule quote from us to get started.
Shouldn’t my accountant prepare this report?
The Australian Taxation Office (ATO) has stipulated that if a property was built after 1985 and the costs are unknown, only quantity surveyors are properly qualified to make the appropriate estimate of the construction costs.
Accountants, real estate agents, property managers, accountants and valuers are not allowed to make this estimate.
Call today to schedule an appointment with one of our expert quantity surveyors!
How will I receive my report?
We will email you a copy of the report and also send it to your accountant if requested. Hard copies can be mailed to you for a minimal fee.
Can I claim depreciation on an overseas property?
If you are an Australian tax payer, you can claim depreciation on any property no matter where it is located.
Washington Brown is the only property depreciation consultants in this country with an international network, making us the number one choice for Australians with investment properties overseas.
Having worked across 22 countries on five continents (and growing), we understand the complexities of global systems to ensure maximum returns on your overseas investments within the Australian taxation system.
What are the main differences between Commercial and Residential property claims?
Main differences include:
- you can occupy the building and still claim depreciation
- older buildings qualify for the building allowance
- claimable items vary by industry and effective life.
Still have questions? Contact one of Washington Brown’s depreciation experts today.
Is it necessary to do a report every year?
No, a Washington Brown depreciation schedule is valid for 40 years (the lifetime of the building). We recommend that you do update the report if you do any renovations, repairs or need to replace internal items.
Why can’t I do my own Depreciation Report?
If you try to estimate your own depreciation, or use a provider without the professional quantity surveying qualifications, you risk submitting an incomplete or poor depreciation report which will cost you a lot in missed deductions. You might also face an Australian Taxation Office (ATO) audit if the report is deemed not up to the standards required. The laws have changed frequently over the years and each building is unique, so it pays to get expert advice.
Does Washington Brown do depreciation on commercial properties?
Washington Brown provides professional depreciation advice and reports for buyers, owners and sellers of commercial property. Our commercial property clients range from individual investors, institutional investors, superfunds and private companies.
We have a specialist commercial property depreciation team, solely dedicated to servicing the needs of commercial property investors.
Our commercial depreciation team have experience in a wide range of commercial property including:
- industrial warehouse
- commercial office space.
Still have questions? Talk to Washington Brown to help solve your Property Depreciation queries.