Property Depreciation Schedules - The New reality

Why the Financial Year End Matters

Financial Year

Every one exchanges and settles a property on different days. However, the end of the financial year only occurs once.

Your report should calculate exactly how much you can claim for building allowance depreciation, based upon the number of days you have owned the property in that financial year.

For instance, if you settled on June 30, you should only be claiming 1 / 365 of any value attached to, say, the oven or the carpet (see this post on small items and low-value pooling for exceptions to this rule). Some reports don’t do this calculation for you. This will cost you money in terms of accounting fees. Depreciation Quote Schedule

One thing I’d like to point out on the timing of your depreciation report is that you should get it sooner rather than later. Don’t wait for the end of financial year deadline when everyone is scrambling to get a report. If you have settled on a property late in the year (say around November or December), order a depreciation report right away so you can avoid the June rush. In some circumstances, you are also able to request monthly deductions, rather than wait until the end of the financial year, and having the depreciation numbers included in your tax variation will assist you.

Work out how much you save using our free property depreciation calculator or make it happen and get an obligation free quote for a depreciation schedule now.

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About Tyron Hyde

Tyron Hyde is a director of quantity surveying firm Washington Brown. He is regarded as one of the industry's leading experts in property tax depreciation, is regularly quoted in the media & asked to speak at conferences. -