Depreciation Schedules – The New Reality

The COVID-19 pandemic has forced many businesses to reflect on “industry norms” and the way they operate. We are no exception.

At Washington Brown we believe in researching each property and advising clients on the best way to approach achieving the maximum depreciation in the most cost-effective way.

Not EVERY property needs to be inspected in order for the maximum claim to be achieved.

This USED to be the case – but the tax legislation recently changed and property investors can no longer claim depreciation on items like ovens or dishwashers that are not brand new.

So NOW you can only claim depreciation on the structure of the building like concrete and bricks for 2nd hand properties.

If you BUY brand new items like carpet and blinds, you can still claim depreciation but it must be based upon the purchase price (not an estimate).

In the OLD days, we used to visit the property so we can value these items individually, the ATO put a stop to that.

Our Commitment to Property Investors Moving Forward

If we determine that an inspection is NOT required to ensure the maximum depreciation claim – this will reduce our fee AND you’ll receive the report sooner. Let Washington Brown work out the best depreciation plan for your property here.

Here are 5 reasons why SOME properties do not require an inspection:

  1. Extensive Database – In 40 years we have amassed an extensive database of construction costs for the majority of residential and commercial buildings around Australia.
  2. We have the costs – We are familiar with your building and as such, we already have the construction costs on file.
  3. Plant & Equipment no more – You have purchased a second-hand property so you cannot claim on the existing plant and equipment components.
  4. Online data – There is an abundance of detailed information and pictures of your specific property available online (both publicly and via subscription-based industry databases).
  5. You have the costs – Your property is a brand new build and you have access to the construction cost, plans and inclusions list.

Here are 5 reasons why SOME properties STILL NEED an inspection:

  1. Your property is unique – Your property is classed as High Spec/Luxury/Non-Standard and therefore not typical. An inspection will ensure the maximum deductions by ensuing all facets of your property are assessed and included.
  2. Non-residential – This means you can still claim the full benefits of depreciation including the Plant & Equipment (carpets, blinds, etc.)
  3. Renovated – Your property has been substantially renovated. There is insufficient information online and as such an inspection is necessary to maximise the depreciation.
  4. More information required  – We do not have access to sufficient information specific to your property. We, therefore, need to acquire this via an onsite assessment.
  5. Plant & Equipment – Your property qualifies to claim Plant & Equipment deductions, an inspection ensures no assets are missed, which means your deductions are maximised.

Let Washington Brown work out the best depreciation plan for your property by getting a quote here. Or work out much you can save by using our free Property Depreciation Calculator.

Calculate It! The Property Depreciation Calculator

Whenever I give a seminar about Property Depreciation, I always have a Question & Answer session at the end

In the seminar, I discuss how I created the Property Depreciation Calculator and spoke about how it helps property investors make informed decisions about the type of rental property they want to buy.

Then this guy up the back puts his hand up the back and asks, “What’s so special about your Property Depreciation Calculator?”

“Well”, I say, “Let me tell you…”

“I’m pretty proud of our property depreciation calculator. It took me 4 years to build and is the only one of it’s kind. In fact, it’s the only property depreciation calculator that lets you work out the depreciation of a property based upon a proposed purchase price.”

“You see, I believe you can’t really work out the depreciation of a property by entering an area. And, let’s face it, how many of us know the internal unit area of our property. Do we include balconies, garages, common areas etc… That’s why I think the other calculators on the market that use an area are flawed.”

I’m pretty excited by now, and I go on…

“I’ve got to be honest, when I first started creating this, well, I had more hair!! It was a long and arduous task.”

“I think no two houses are the same. So, basing the depreciation of a property on it’s area is flawed. I wanted to create a property depreciation calculator where people could enter a proposed purchase price and easily get a result.”

Depreciation Quote Schedule“Now, in order to do that we needed to come up with a way where the calculator would grab lots of similar property types, add them up and average them out.”

“That’s why it took 4 years to build. We needed enough data in the calculator to make it a calculator that property investors could use. And today, I’m proud to say, day in – day out… It remains the most used part of our website.”

“We’ve actually got a patent pending on it… Again, a reason why I’m proud.”

If you need a depreciation schedule for your investment property – get a quote here or work out how much you can save using our free calculator.

Calculate It! How Much Can You Save?

How to calculate property depreciation

Calculate It!

When I was on stage giving a seminar about Property Depreciation, I always have a Question & Answer session at the end.

In the talk… I discuss our Property Depreciation Calculator and how it helps property investors make informed decisions about the type of rental property they want to buy.

Then this guy up the back puts his hand up the back and says

What’s so special about your Property Depreciation Calculator?

“Well”, I say, “Let me tell you…”

“I’m pretty proud of our property depreciation calculator, it took me 4 years to build and is the only one of its kind. In fact, it’s the only property depreciation calculator that lets you work out the depreciation of a property based upon a proposed purchase price.” Depreciation Calculator

“You see, I believe you can’t really work out the depreciation of a property by entering an area – and, let’s face it, how many of us know the internal unit area of our property. Do we include balconies, garages, common areas etc…You see that’s why I think the other calculators on the market that use an area are flawed.”

I’m pretty excited by now, and I go on…”I’ve got to be honest…when I started creating this property depreciation calculator, well, I had more hair!! It was a long an arduous task.”

“You see, I think no two houses are the same, and that basing the depreciation of a property on it’s area is flawed. So I wanted to create a property depreciation calculator where people could enter a proposed purchase price and easily get a result.”

“Now, in order to do that we needed to come up with a way where the calculator would grab lots of like type properties add them up and average them out.”

“That’s why it took 4 years to build, we needed enough data in the calculator to make it a calculator that property investors could use. And today, I’m proud to say, day in – day out…it’s the most used part of our website.”

“We’ve actually got a patent pending on it…again why I’m proud.”

If you need a depreciation schedule for your investment property – get a quote here or work out how much you can save using our free calculator.