When it comes to maximising your return, tax depreciation schedules are one of the most valuable tools for property investors in Australia. But despite its importance, many people either delay getting one, or don’t understand how to use it effectively. In this blog, we explore the biggest mistakes investors make with their tax depreciation schedule, and how you can avoid them this tax time.
1. Not Getting a Tax Depreciation Schedule at All
Many investors assume their property is too old or too simple to benefit from depreciation. However, most income-producing properties are eligible for some form of tax deduction, especially if renovations have been completed. A tax depreciation schedule can uncover claimable items that you might otherwise miss.
2. Assuming Their Accountant Will Handle It
Accountants play a key role in preparing your return, but the ATO requires that a tax depreciation schedule be completed by a qualified quantity surveyor or valuer. Without this report, your accountant can’t apply depreciation claims properly.
3. Not Updating the Schedule After Renovations
Did you install new flooring, appliances or fittings? If you’ve improved your investment property, your tax depreciation schedule needs to reflect that. An outdated schedule means you’re potentially missing out on deductions.
4. Using Free or Generic Tools
Free online tools or templates may provide an estimate, but they won’t hold up under ATO scrutiny. Only a professionally prepared, ATO-compliant tax depreciation schedule is acceptable if audited.
5. Waiting Until It’s Too Late
Many investors postpone organising their schedule, but acting early allows you to claim the full year’s depreciation in your next tax return. You can sometimes backdate claims, but that’s never a guarantee. The earlier, the better.
Why Work with Herron Todd White?
Herron Todd White prepares fully ATO-compliant tax depreciation schedules for investors across every Australian postcode. Our qualified valuers and quantity surveyors ensure your deductions are maximised, your reports are audit-ready, and your investment strategy is built on strong foundations.
Avoiding these mistakes could result in thousands of dollars saved, not just this year, but every year going forward. If you’re investing in property, don’t overlook the importance of a professional tax depreciation schedule.
Contact Herron Todd White today to book your schedule and stay ahead this tax time. If you’re also planning to sell, renovate, or transfer property, our team can support you with compliant valuations, too.