Tax Depreciation Schedules – Request a Quote

If you own an income producing property (rental property or business related) then you should obtain a tax depreciation schedule if you wish to claim depreciation allowances. Schedules are prepared by qualified Quantity Survey professionals to not only ensure that all possible deductions are identified but also that ATO governing laws and requirements are met.

To compensate taxpayers for the reduction in value of items used in the production of taxable income; assessed as building works, plant u0026amp; equipment, and structural improvements.

1. Building — Capital Works (Division 43) (the bricks u0026amp; mortar, this is the actual mainrnstructure)rnrn2. Structural Improvements (Division 43) (this refers to external works such as pool, fencing,rnpaving etc.)rnrn3. Plant u0026amp; Equipment (Division 40) (Typical Pu0026amp;E items for a residential development include carpets, curtains, air conditioners etc.)

Tax Depreciation can be claimed once a property becomes income producing, ie deriving an income from tenancy or business related income. Depreciation allowances are bound by ATO tax rulings and legislation, with specific key dates playing a significant part in the preparation of a tax depreciation schedule. Reference to thernAustralian Taxation Office legislation and tax rulings for depreciation is governed by the Income Tax Assessment Act 1997.

Yes, depreciation allowances for common areas are apportioned according to unit entitlement. A full inspection of the strata complex common areas will occur in addition to your individual unit inspection. Depreciable items in common areas include but not limited to Fire Hose Reels, Fire Extinguisher, Smoke Detection u0026amp; Alarm System, Hydrant Pump, Car parking, Pool/Spa Equipment, Gym Fitout and Equipment, etc.

A detailed site inspection of your property will be completed to identify all of the depreciable items. From there our Quantity Surveyor will prepare a schedule which sets out the maximum depreciation allowances for the Building, Structural Improvements and Plant u0026amp; Equipment, including items such as floor coverings, kitchen appliances, hot water service etc. This information is incorporated into a full report which sets out the allowances for future years which you can then simply pass on to your accountant for preparation of your tax return.

Yes.

Our tax depreciation schedules are split into two sections:rnCapital Works Allowance – Capital works are those building elements that are integral to the building structure i.e. walls, floors, roofs etc. Residential investment properties constructed after 19th July 1985 are eligible to claim 2.5% or 4% of the original construction cost depending on the date the property was constructed.rnDecline in Value of Plant and Equipment – Articles of plant and equipment can be deducted at an increased rate compared to the capital works allowance. There are many items identified by the ATO which can be categorised as plant and equipment. For example carpet, curtains, whitegoods, air- conditioners etc are all considered to be plant and equipment (Note: This list is not exhaustive).rnThe ATO stipulates that u0022an appropriately qualified personu0022 (TR 97/25) must be engaged to calculate original building costs if accurate original costs are unavailable. As Quantity Surveyors and Registered Tax Agents, HTW are appropriately qualified as outlined by the ATO to compile tax depreciation schedules.

Depreciation may be claimed on any property, either new or old. To claim depreciation allowance, the following conditions must be satisfied:rnThe property must be owned by the taxpayer. The property must be used for the purpose of producing assessable income, or be ready for use for that purpose.

No. All properties are entitled to some form of depreciation regardless of age.rnThe investment property does not have to be new: Both new and old properties will attract some depreciation deductions. All fixtures and fittings are claimable. Also, any renovation or improvement carried out after 27/2/1992 is entitled to some form of depreciation and capital works deductions respectively. You can also adjust previous year’s tax returns: When a property owner has not been claiming or maximising tax depreciation deductions, currently up to the previous two financial year’s tax returns can be adjusted and amended.

The age of the building can be determined by obtaining council documents with dates pertaining to the original application approval date or the Occupancy Certificate date, and final inspection date.

Yes. Anything in the property that is part of a previous renovation will be estimated by our quantity surveyors and depreciated accordingly. For capital improvements to qualify for the Division 43 construction write off allowance, they must be completed after 27/2/1992.

Information we require to produce a Tax Depreciation Schedule includes the following:rnu003culu003ern tu003cliu003eYour settlement date AND purchase priceu003c/liu003ern tu003cliu003eAny information pertaining to improvements or additions made to the property, including dates and costs where availableu003c/liu003ern tu003cliu003eThe date the property became income producing. (Tenancy date)u003c/liu003ern tu003cliu003eFloor Plans if availableu003c/liu003ernu003c/ulu003e

Yes, a depreciation report can be prepared to allow an individual to easily recover missing depreciation benefits up to a period of 4 years.

Claiming depreciation allowance offsets your total taxable income, and reduces the tax you have to pay in today’s dollars. This will u0022free upu0022 your cash flow and enable you to repay your mortgage or debt in a shorter duration.

The distinction is between repairs and improvement. Improvement is dealt as capital works, whereas repairs are dealt with as a normal outgoing expense. All maintenance or repair works carried out during the leasing period need to be examined on a case by case basis by our Surveyor i.e. if the works are of repairs or improvement nature.

All figures are calculated from settlement date and you can do an adjustment up to 4 years past. So you may be able to claim up to 4 years of depreciation in this financial year.