What is a Depreciation Report (or Schedule)?
A depreciation report is a document that outlines the yearly depreciation claims available on your investment property. This essentially allows you to claim a deduction on the wear and tear on your investment property.
Why do I need a tax depreciation schedule as a property investor?
Simple, because a depreciation schedule will save you money on your property investment. When you receive the depreciation report you will be told how much year by year you can claim via the way of a depreciation claim. Your depreciation deductions reduce your income tax bill each financial year.
In certain circumstances, a tax depreciation schedule will be required if renovation works are undertaken. Generally these could be classified as repairs, replacements or improvements.
For example, in the event of a natural disaster, the necessary repairs to the property may constitute an improvement. As a result, a quantity surveyor may be required to allocate costs to the appropriate tax rates.
What areas do you service?
Washington Brown prepares depreciation reports throughout Australia.
We have offices in every major city:
How much will a report cost?
Price varies depending on the location of the property and whether the property needs an inspection or not.
Get a fast, online quote today for your free depreciation plan.
Can my accountant prepare the report?
No, you need a quantity surveyor to prepare a depreciation schedule for your investment property.
Accountants used to prepare depreciation reports, but the ATO now only allows qualified Quantity Surveyors to prepare the report.
How much depreciation can I claim?
That depends on the type of property you have bought and how old it is.
If your property is brand new you can claim more. This is because you can claim both the plant and equipment in the building, together with the building allowance.
I heard the depreciation laws have changed – is that true?
Yes – the depreciation laws have changed. You can no longer claim the depreciation on “previously used” assets.
That basically means – you can’t claim second-hand items like carpet, ovens and dishwashers.
Unless you buy them brand new.
