Property Depreciation Schedules
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.
Frequently Asked Questions
Find the answers from the Property Depreciation Schedule Experts to some of our most commonly asked questions below.
What is Property Depreciation? Back to top
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 over time 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. Want to know what types of things you can claim on your taxes?
Call us for a free consultation. There’s no obligation, we’re happy to speak with you about your options.
So how does a Depreciation Schedule help me? Back to top
Simple. A depreciation schedule will help you pay less in taxes. 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. 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.
Get a FREE Depreciation quote online and find out how much you could be saving!
Why use Washington Brown to prepare my depreciation report? Back to top
- 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.
How much will my Property Depreciation schedule cost? Back to top
The cost of preparing a tax depreciation schedule varies according to the type of property you’ve purchased, its location, size and numerous other factors. Remember, we guarantee you’ll save at least twice our fee in the first 12 months or our report is free. Furthermore, the depreciation schedule fees are 100% tax deductible. You have nothing to lose, and will definitely save thousands! Obtain a free online quote today to see how much you can save.
How much will I save? Back to top
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.
How accurate are the depreciation reports you offer? Back to top
Because we are 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. Better information means more accurate reports and more savings for you.
Does Washington Brown offer a guarantee? Back to top
Absolutely. We promise to save you twice our fee in the first year or the report will be free. Our guarantee is based on the tax deduction calculated 12 months from your settlement date. This means NO RISK to you; our services essentially pay for themselves.
Will you need to inspect my property? Back to top
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, and the documentation can then be used as evidence in the event of an audit. A thorough inspection by one of our surveyors guarantees you won’t miss out on any deductions? in fact, we may see things you didn’t know you could claim!
Call today to schedule an appointment! How long will it take to complete my schedule?
How long will it take to complete my schedule? Back to top
We are the industry leaders in 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. Therefore, your depreciation schedule will take approximately 2-3 weeks to complete, as long as we have access to inspect your property without delay. In some cases, we can offer priority service at an additional charge. Get started now!
Is my property too old to claim Property Depreciation? Back to top
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.).
Commercial and industrial properties are subject to varying cut off dates. Click here for more information. There is always something you can claim, so it’s well worth your time to get a free quote or contact one of our experts for advice.
My property is renovated. Can I still claim? Back to top
Yes. We will need to know how much you spent on renovations. This is an ATO obligation. And even 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? Back to top
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? Back to top
If your residential property was built after 1985, your accountant is not allowed to estimate the construction costs. Tax Ruling 97/25 issued by the Australian Taxation Office (ATO) has stipulated that only Quantity Surveyors are 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 and should be handled by expert Quantity Surveyors. We are Quantity Surveyors with over 35 years of experience preparing depreciation reports.
How will I receive my report? Back to top
We will email you a copy of the report and send it to your accountant if you wish. We will also mail you a hard copy additional for a small fee if you request.
Can you claim depreciation on an overseas property? Back to top
No matter where your property is in the world, you can claim depreciation if you are an Australian tax payer. We have helped clients with depreciation schedules in countries such as New Zealand, USA, Asia, UK, and other European countries.
Get a FREE online depreciation quote for your overseas today and see how much you could be saving!
Still have questions? Talk to Washington Brown to help solve your Property Depreciation queries.