Depreciation Report
Depreciation Report

What is a tax depreciation report?

A property depreciation report is prepared by a Quantity Surveyor that saves property investors money.

In essence, property investors can claim tax on the wear and tear of property investment, just like a business can claim the depreciation entitlements of the computer they use for their business.

How to calculate property depreciation for taxes can be complicated, and that is why you need a Quantity Surveyor to prepare a report for your individual circumstances.

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?

A Washington Brown depreciation report will outline the wear and tear on your investment property, which is classified as a form of tax deduction. In Australia, the depreciation report must be up-to-date with the ATO (Australian Taxation Office) provisions and changes that apply to:

What type of allowances can I claim on my depreciation schedule?

While we are on the subject of ATO, there are two types of allowances regarding depreciation:

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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Estimated Results

Years Diminishing Value Prime Cost
Year 1 $0.00 $0.00
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What is the process of getting a building depreciation report?

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 Quantity Surveyor.

What information does the report contain?

Sample Depreciation Report Example

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.

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.

The most sensible method to approach this is to hire professionals who will consider each cost from the settlement date.

Depending on the property type and other relevant factors, you would want an expert who can factor in the diminishing value or prime cost methods of depreciating assets.

Before submitting the tax return with ATO, property investors need to consult with a qualified quantity surveyor who has systematic knowledge of the current tax depreciation rules and capital deductions legislation.

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.

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 $330 and $715, including GST.

Not all depreciation reports are the same, but make sure you know whether the tax depreciation report needs an 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.

Click the link below to see how much a depreciation report costs.

Request a free depreciation quote from Washington Brown today!