Must Read Inspection Options

Try Washington Brown's proprietary
Property Depreciation Calculator

This is the first calculator to draw on real properties to determine an accurate estimate. It allows you to work out the likely tax depreciation deduction on your investment property.

Property Depreciation Calculator
Find out the potential return on a property

* Required fields

1987
2010
2022
Please call for commercial and industrial properties

Love this calculator? Get the free smartphone App

Estimated Results

Years Diminishing Value Prime Cost
Year 1 $0.00 $0.00
Calculate another property

Calculator FAQs

What Is Property Depreciation Calculator?

A depreciation calculator is merely an accounting tool that helps investors save money by claiming the wear and tear of a property on their tax return.

The Washington Brown, a property depreciation calculator, is unique because it enables property investors to estimate the depreciation by simply inputting a purchase price.

It is the only calculator on the internet that enables you to do that.

Of course, we would advise you to get in touch with our quantity surveyors for a detailed depreciation report or tax depreciation schedule. A highly qualified professional will know how to integrate every critical feature and acquire the maximum amount that decreases your taxable income.

Get a free depreciation quote from Washington Brown today!

Let us explain the features of the Washington Brown depreciation calculator so that it’s easier for you, the property owner, to input the correct information. Moreover, our depreciation calculator works on already gathered data, meaning when you input the data, we search the properties in our extensive database to find the ones similar to yours. Once we do that, you’re getting accurate estimates, which can be valuable to you in more ways than one.

Short Step-by-Step Instruction Manual

  1. You need to enter the purchase price of the property in AUD (always input the amount specified in the Contract of sale of real estate — it’s usually stated in the Particulars of sale section of the contract)
  2. The purchase date of the property (this is necessary information because of the new ATO depreciation guidelines)
  3. The year in which the building was built (relevant for calculating the depreciation and if you are actually entitled to it)
  4. Property type (click on the info button for further details or check the Contract of sale of real estate)
  5. Standard of finish (click on the info button for additional information)
  6. Location

The only thing you have to do now is click “calculate” and wait for the results. The process only takes a couple of seconds, after which you get the estimated depreciation claims over the first ten years of your property ownership.

What are depreciating assets, according to ATO guidelines?

According to the Australian Taxation Office (ATO), a depreciating asset

“… is one that has a limited effective life and can reasonably be expected to decline in value over the time it’s used. Land, trading stock and some intangible assets are not depreciating assets.”

Depreciating assets include usable items such as computers, electric tools, furniture and motor vehicles that are losing value and functionality over time. On the other hand, land and items of trading stock are expressly excluded from the definition of depreciating asset because the nature of the asset is not subjected to wear and tear.

ATO publishes a list of depreciating assets available online for preview. According to ATO guidelines, most intangible assets are also excluded from the definition of depreciating assets. There are only rare exceptions to that rule, and most of them are in the intellectual property area.

However, if you improve the land or build fixtures on land, such as a fence, the fence would also be considered a depreciating asset. Even though it might sound a bit confusing, every asset which is not an integral part of the land itself can be depreciated, removable or not.

Use a Tax Depreciation Calculator

Suppose you need to calculate the depreciation of your property. In that case, you should use an investment property depreciation calculator to get at least a general idea about the tax deductions you can claim in your tax return. Therefore, according to the Australian tax law, you can claim tax deductions on:

Thus, it becomes understandable why it is prudent to use a calculator to find out the rough estimate of the tax deduction. Additionally, most of the time, when you’re signing the Contract of sale of real estate, the depreciation deduction is already calculated into the total price.

Use a House Depreciation Calculator

Another option is to use a house depreciation calculator. For example, the Washington Brown calculator features each of the alternatives mentioned here in one place. However, that is not the case with all depreciation calculators you’ll find on the internet.

Capital Works Deductions for New Buildings

The depreciation for the cost of building the investment property is spread over 40 financial years. According to ATO, that’s the approximate length of time a building lasts before it needs replacing. You claim depreciation each year over an extended period of time.

Capital Works Deductions for Old Buildings

If the property has been built after September 15, 1987, you’d be able to claim 2.5 per cent depreciation on the original construction cost. That’s each year until the property is 40 years old. As you can see, it’s evident that you can claim more capital deductions for a new building instead of an old one.

Take advantage of the massive Washington Brown database, and use the depreciation calculator to determine your tax reductions in the next ten years.

Get a free depreciation quote from Washington Brown today!