- Tax Depreciation Schedule
What is a tax depreciation schedule?
A tax depreciation schedule is a report that breaks down the building into two components.
Firstly you have the building allowance – which relates to the structure of the building. This includes items like brickwork, concrete, roofing and kitchen cabinets. These items depreciate over a 40 year period at fixed rate of 2.5% of the original construction cost.
Secondly, the property contains plant and equipment assets. These assets include fixtures and fittings such as a dishwasher, carpet, light fittings, air conditioners and window blinds.
These items wear and tear quicker – which means you can claim them at a faster rate.
Your tax depreciation schedule will separate the two in the report, and provide a yearly tax deduction to use in your tax return.
What Can I Claim?
If you have purchased a brand new property, and it was never owner occupied, then you can claim deductions on the both the Building Allowance and Plant & Equipment components.
However, if you have purchased a second-hand residential property after 8 May, 2017, then you likely can only claim on the Building Allowance.
This is due to the Federal Budget changes to depreciation in 2017.
To be eligible for Building Allowance deductions, the property must have been built after 1987. However, if the property has been renovated or a granny flat has been added since 1987, you can claim deductions on these components.
How Much Can I Claim?
You can use the Tax Depreciation Schedule Calculator to work out your estimated tax depreciation claim.
Where Do You Provide Tax Depreciation Reports?
We provide Depreciation Schedules in the following locations:
Tax Depreciation Schedule Articles:
Video about Latest changes in claiming property depreciation.
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Client Name and Unit Number have been altered for privacy. Marie came to Washington Brown looking to maximise her tax depreciation deductions, having purchased a second-hand investment property in 2018. The house was originally built in 2000 and was purchased for $1,200,000 in 2018. The two storey house consisted of 4 bedrooms, 2 bathrooms and […]
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