Depreciation Schedules Sydney – Pay Less Tax This Year
At Washington Brown Quantity Surveyors – Sydney, we’ve been providing depreciation schedule advice to individual property investors and developers in Sydney for over 40 years.
We’ve got experience across all building types – residential, commercial, industrial and government. We service all Sydney locations and suburbs as well as regional and country NSW including: Newcastle, Wollongong, Blue Mountains, Central Coast, Coffs Harbour, Orange and Batemans Bay.
Our team of qualified quantity surveying professionals are members of the Australian Institute of Quantity Surveyors and are experts in tax depreciation schedules.
How will a depreciation report help me?
As a property investor, you are entitled to claim the wear and tear of an investment property against your taxable income.
The property’s age will affect how much you can claim. Generally speaking, the newer the property, the more you can claim because the Australian Taxation Office has ruled that you can no longer claim depreciation on Plant & Equipment in second-hand properties.
How much will my depreciation report cost?
Many factors help determine how much a depreciation schedule will cost for your Sydney investment property.
Some of the factors include:
- Does the property need an inspection? Click to the link to learn about the property depreciation changes regarding inspections. The laws have recently changed and not all properties now need an inspection.
- Is your property a commercial or residential property?
- The locality of the property can affect the price of the depreciation schedule.
- The size of the property can affect the quote as well. The larger the property the more rooms need to be measured and that can affect the price.
If you require a depreciation schedule for your Sydney investment property, you can organise a quote here Depreciation Schedule Sydney Quote
What does a depreciation schedule look like?
A Sydney depreciation schedule has two components, as you can claim two types of allowances when depreciating a property.
First, you can depreciate the structure of the building, which is called the Division 43 allowance. This allowance relates to items such as bricks, concrete, etc.
The second part of a depreciation schedule relates to the Plant & Equipment in the building. These items relate to things like ovens, dishwashers, and blinds. These objects are easily removable and depreciate faster.
How much depreciation can I claim on my Sydney property?
Your claim will depend on the type of property you have bought and how old it is.
The best way to calculate how much you can claim is to use the Free Property Depreciation Calculator.
We used the calculator and worked out that you could claim over $100,000 over the first 10 years, based upon a purchase price of $800,000.
How long will my depreciation schedule last for?
When you order a depreciation schedule, the report generally lasts for 40 years. You do not need to come back and order a new depreciation schedule because the report we produce will itemise the allowance you can claim over the life of the property.
Learn more about Tax Depreciation Schedules
How long will it take to get the depreciation report?
Generally speaking, tGenerally speaking, the report takes between one and two weeks to organise. The main factor that decides how long it takes is whether an inspection is required.
The tax laws have changed and you can learn about the property depreciation law changes here.
What’s the difference between a depreciation schedule and a depreciation report?
Actually, nothing. It’s just an industry term; sometimes we refer to these reports as depreciation schedules and sometimes as depreciation reports.
What are capital works deductions?
Capital works deductions relate to the structure of the building, includes brickwork, roofing, concrete, etc.
You claim the capital works allowance at a rate of 2.5% per annum based upon the original construction cost. So if the property originally cost $100,000 to build, you can claim $2500 per annum as a tax deduction.
The year the property was built has an impact on your depreciation claim, as the 40-year life of a capital works allowance will start from.
The capital works allowance can vary from 2.5% to 4% – but in most cases, as a residential property investor, you will only be claiming 2.5% per annum.
Will you need to inspect my Sydney property in order to prepare a depreciation schedule?
That really depends on the property. With the recent tax law changes relating to depreciation laws for investment properties, an inspection may not always be necessary.
A good Quantity Surveyor should review your property first, and then advise whether a property inspection is necessary in order to achieve the maximum depreciation allowances.
Can you prepare commercial depreciation reports?
Washington Brown also prepares office, industrial, and even shopping centre depreciation schedules.
Even if you are the tenant, you can still benefit from a commercial depreciation schedule because you may have paid for the fit-out, which means you can claim the depreciation.
Can’t my accountant prepare my depreciation report?
Where the costs are unknown the Australian Taxation Office is quite clear that an accountant cannot estimate the construction costs.
Tax Ruling TR 97/25 clearly identifies Quantity Surveyors as having the appropriate skillset to estimate the construction costs where the costs are unknown.
How often do I need to get a report?
The good news is that you only need to order a depreciation schedule once. The depreciation schedule will last for 40 years. Of course, if you make major improvements to the property it might be best to get the report amended.
If not, you can use the report for the life of the property.
Are your fees tax deductible?
Yes, all fees paid for the depreciation schedule’s preparation are tax-deductible.
Do you offer a gurantee?
Yes! if we don’t get you at least twice your fee in the first 12 months since your settlement date, we don’t charge you.
So you have nothing to lose in getting a depreciation schedule!
To discuss your project or Sydney investment property depreciation schedules call us now at (02) 8324 7440 or email us!
To reach us via snail mail:
Suite 504 / 321 Pitt St,
Sydney NSW 2000
