Tax Depreciation

What is a Tax Depreciation Schedule?

A TAX DEPRECIATION SCHEDULE
is a document prepared by ATO Compliant Quantity Surveyors that outlines the depreciation allowances an investor is entitled, and enables your accountant to maximise your tax benefits. Please seek tax advice from your accountant.

There are two possible types of depreciable deduction – capital works and plant and equipment

Capital Works refers to structural improvements made to a property, while plant and equipment allowances are applied to items such as carpet, air conditioning, hot water units and curtains.

All depreciation schedules include both Diminishing Value and Prime Cost methods. Please consult your Accountant for tax advice as to which method is best suited to your requirements.

ARE YOU ELIGIBLE?
If you own an investment and/or rental property – then yes you are.

BENEFITS TO LANDLORDS
Monies saved by a Depreciation Schedule can go towards periodic maintenance, renovations, improvements thus obtaining higher rental or you can use it increase your property portfolio.

Real Examples

Pre 1985 Example: Standard 3 bedroom home, brick veneer, built in Victoria in the mid 1970’s

Purchase price: $485,000
Property includes standard fittings and has undergone
an internal renovation in the past 2 years

Option 1
Depreciable plant allowances using
Diminishing Cost method
Over first 5 years = $24,104.52

Option 2
Depreciable plant allowances using
Prime Cost method
Over first 5 years = $18,780.45

Total allowances calculated over the life of the building = $90,681

Post 1985 Example: 3 bedroom townhouse, brick veneer, built in Victoria in 2007

Purchase price: $655,000
Property includes standard fittings

Option 1
Depreciable plant allowances using
Diminishing Cost method
Over first 5 years = $54,639

Option 2
Depreciable plant allowances using
Prime Cost method
Over first 5 years = $48,743

Total allowances calculated over the life of the building = $271,641.97

Am I Eligible?

If you own an investment property – you are eligible now. There could be a pile of money waiting for you by using Property Tax Depreciation.

Maximise your tax savings now. Start saving thousands of dollars on your future tax returns.

Don’t risk it –  a substandard Tax Depreciation Schedule will not withstand an ATO (Australian Taxation Office) audit unless completed by a qualified Quantity Surveyor.

According to the ATO 52% of Property Investors don’t claim all their available deductions.

Companies or individuals who prepare Tax Depreciation Schedules without conducting a full property inspection simply cannot certify that the calculations provided are legitimate and accurate.

How do I get started?

Simply fill out the enquiry form below, and a qualified consultant from Peninsula Property Inspections will respond shortly after or call Dale Hutchins on 0488 777 766 E: dale@ppinspect.com.au
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