About Tyron Hyde
Tyron Hyde is the CEO of Washington Brown Quantity Surveyors. 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.
Tyron hosts a podcast called "Ten with Ty" where he interviews Australia's most successful investors as a lasting legacy for his daughter and followers, teaching them how to build and maintain wealth.
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Tyron has a Degree in Construction Economics (UTS) and is a Fellow of the Australian Institute of Quantity Surveyors. He began his career at Washington Brown in 1993 as a wide-eyed intern looking for a break in the industry. Twenty eight years later, he is now the sole owner of Washington Brown Depreciation Pty. Ltd.
With his passion and knowledge of property depreciation, Tyron is a regular speaker at industry conferences and is often quoted in national media. He has also published numerous articles and books including his popular Keep Claiming It book.
What is a tax depreciation report?
Before we dive into what a tax depreciation report is, it’s best to understand property tax depreciation. When it comes to property investment, tax depreciation is a tool that is often overlooked when claiming deductions during tax season.
Simply put, property depreciation is a non-cash deduction that allows property investors or developers to claim tax on a portion of the cost of their property over the property’s lifespan.
How do I claim depreciation?
To claim depreciation, you need to order a depreciation schedule from a qualified quantity surveyor (QS). A depreciation schedule comes in the form of a report which is why it is often called a ‘depreciation report’.
As a building gets older, its structure and the assets within it are subject to general wear and tear. In other words, each year, the value decreases and thus, depreciates.
A property depreciation report, prepared by a quantity surveyor, saves property investors money.
In essence, property investors can claim tax deductions on the wear and tear of property investment, just like a business can claim the depreciation entitlements of the computers they use for their business.
The Australian Taxation Office accepts a report from a qualified quantity surveyor, such as Washington Brown.
Request a free depreciation quote from Washington Brown today!
Why use Washington Brown to prepare my rental depreciation report?
Established in 1978, Washington Brown is one of Australia’s most respected quantity surveying organisations, headed by CEO and Fellow of the Australian Institute of Quantity Surveyors, Tyron Hyde.
Washington Brown helps both residential and commercial property investors pay less tax by producing ATO-compliant depreciation schedules that aim to claim the maximum depreciation possible on their investments.
We are trusted by Australia’s largest organisations in the property industry, including Meriton and CoreLogic RP Data, Lend Lease, Deicorp & Hotspotting.
We pride ourselves on our employee and customer happiness, which is reflected in our reviews. You can read them online: Washington Brown Trust Pilot Reviews and Google Reviews.
Other reasons to order:
- We produce bespoke depreciation reports and we make sure you claim the maximum allowance you are entitled to.
- The report is valid for 40 years; previous renovations and acquisition improvements are factored in the report
- Joint ownership reports and split reports regarding each of the owners are prepared when applicable
- Furniture package acquisitions are included per standard
- Time lived in the property is also included and factored in the report
What are the types of depreciation deductions I can claim?
There are two types of allowances regarding property depreciation:
- Plant and Equipment – which are items that can be found within the building, like ovens, air conditioners or carpets
- Building Allowance – the construction costs of the building itself, for example, concrete and brickwork.
Please note – you can only claim Plant & Equipment on brand new properties now. Still, in every rental depreciation report, you can claim the Building Allowance Rental Property deduction.
Use our free depreciation calculator and get an accurate estimate of your total tax depreciation deductions on your investment property.
Property Depreciation Calculator
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What is the process of getting a depreciation report and who is qualified to do it?
When you assess your tax depreciation, you can claim most of the depreciation based upon the original construction cost of a property.
However, the process itself is not as simple as it looks; only the result for the client is. Since you can’t just estimate the construction cost claims by yourself, you will need a qualified quantity surveyor to do that for you.
They will inspect the property and create a bespoke property depreciation schedule as a professional. According to the ATO rules mentioned above, the construction cost (the basis for the write-down) can only be estimated by a quantity surveyor.
What information does a tax depreciation report contain?
Wanting to “get your money’s worth” is only natural, so we’re going to share the essential information you will be getting in the building depreciation report.
- A breakdown of the applicable capital works assets that can be claimed.
- A financial examination of the plant and Equipment included within the property and whether you can now claim those items.
- A breakdown of any items you have included within the property itself.
This will enable us to create a high-quality, detailed, per ATO requirements tax depreciation report that will save you money.
How important is a tax depreciation report for an investment property?
The rental depreciation report for investment property is helpful because you, as an investor, can maximise your property’s cash flow and tax benefits each financial year.
A building depreciation report can be a powerful tool for cost reductions because, as we said above, it will reduce your taxable income. Calculating the depreciation tax reduction in your investment plan is also a more practical way to save money.
What information is included in a depreciation schedule?
Typically, a depreciation schedule provides you with a detailed breakdown of the property’s depreciation assets which includes fixtures, fittings and its structural elements, along with their respective values and depreciation rates over time.
Depending on the property type and other relevant factors, we can factor in the diminishing value or prime cost methods of depreciating assets. This not only helps you understand how much each asset has depreciated during specific periods, but also, its financial impact.
To ensure you’re maximising your tax deductions while still remaining compliant with tax rules and legislations, request a quote from our team at Washington brown today!
How much does a property depreciation report cost?
Pricing can vary depending on whether you need a depreciation report for a house or commercial property. Generally speaking, for a residential depreciation tax depreciation schedule, you will pay between $385 and $770, including GST. Most properties fall between the $500 – $600 bracket.
Not all depreciation reports are the same, but make sure you know whether the property needs an depreciation inspection or not.
The laws have changed, and Washington Brown will advise you on your depreciation report’s best plan and cost.
Some companies advise that all properties need an inspection – that is not the case anymore.
What are important factors I should consider for achieving a thorough depreciation schedule?
- It should offer both prime cost and diminishing value methods for optimal tax planning.
- Span 40 years in the report for longevity in tax returns.
- Ensure accreditation and recognition from the Australian Institute of Quantity Surveyors, authorised by the Tax Practitioners Board.
- Tailor the depreciation report to the settlement date, not a generic calculation, which usually starts July 1.
- Have the quantity surveyor evaluate if an inspection is needed, as not all properties mandate one following legislative changes.
- Consider the experience of the quantity surveying firm. Washington Brown has over four decades of quantity surveying experience and data on investment properties.
Request a free depreciation quote from Washington Brown today!