Tax Depreciation Schedules For Rental Property

Tax Depreciation Schedules For Rental Property

Tax Depreciation Schedules for Rental Property

Tax Depreciation Schedules for Rental Property

Get a quote a for a tax depreciation schedule on your rental property – click here or use our free tax depreciation calculator to work out your potential tax saving by clicking here

Everything you need to know about tax depreciation

Depreciation itself means that the value of particular assets decreases over time because of constant usage (wear and tear). As a term, depreciation is used in accounting and according to ATO rules for assets that decline in value each year. Tax depreciation reports help you reduce your taxable income and claim tax deductions.

The tax depreciation is usually calculated by determining the original cost or current value of the asset, including but not limited to the price, transportation and set-up expenses. Then we need to determine the written down value of the asset each year and subtract it from the first value. Hence, the deduction we get is the original value divided over the years of “effective life” of the asset.

If you’re wondering what the term “effective life” in a tax depreciation report is, you should turn to ATO regulations.

“ … The decline in value of a depreciating asset is generally based on its effective life; that is, how long it can be used to produce income … The effective life is used to work out the asset’s decline in value (or depreciation) for which an income tax deduction can be claimed …”

Washington Brown works in complete compliance with ATO guidelines, and according to the latest changes regarding the effective life of depreciating assets, applicable from 1 July 2018. Every tax depreciation report we produce is valid for up to 40 years.

If you prefer to speak one on one with an expert regarding your tax depreciation, you are free to get in touch, and we’ll explain everything to you in great detail.

Why is a tax depreciation report required?

A tax depreciation report is required by law if you want to reduce the taxable income on your investment property through depreciation. Since it’s apparent that you can’t assess and review the state of your assets by yourself, you need a qualified Quantity Surveyor to review the property. Furthermore, you would want an established quantity surveying organisation to do your tax depreciation.

Washington Brown was founded in 1978, which makes it one of the oldest most respected quantity surveying organisations in Australia. It’s led by Directors Tyron Hyde and Tom Lander. Moreover, once you schedule a tax depreciation consultation with us, our quantity surveyors will determine if an inspection is required for your investment property and organise it as fast as possible. That’s because we understand how valuable your time is and the goal is to save you money, in every form.

Another essential piece of information is that Washington Brown is fully registered with the Australian Institute of Quantity Surveyors. That means that we are authorised to prepare a depreciation report for property investors. Once you get our report, you will see that we divide it into easily understandable categories and we also include joint ownership and split reports.

Furthermore, our reports are based on three crucial pillars:

  • accounting experience
  • construction industry knowledge
  • detailed understanding of property related tax law

You can contact us for a free tax depreciation quote, or use our tax depreciation calculator for free.

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