Investment Property Depreciation Schedule
As a residential property investor you should have a tax depreciation schedule to substantiate and claim maximum allowable deductions in your tax return
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What is tax depreciation?
Tax depreciation is a tax deduction claimed for the natural wear and tear of an income-producing building and its assets over time.
It is generally the second biggest tax deduction for property investors, after interest.
What is a depreciation schedule?
A depreciation schedule is a comprehensive report that allows you to claim the natural wear and tear over time on commercial and residential investment properties, including deductions for all the fixtures and fittings as well as on the building structure itself.
A depreciation schedule is crucial to ensure you are claiming the
maximum deductions in your tax return.
To prepare your depreciation schedule email us at admin@taxbook.com.au or book an appointment to arrange a meeting
Depreciation deductions on your investment property is a key to increasing your tax refund
Benefits of a depreciation schedule
On average we find most clients can claim $10,000 in depreciation dedcutions in the first full financial year of owning their investment property.
Your depreciation schedule lasts for forty years and requires only a one-off preparation fee which is 100% tax-deductible.
You can use your depreciation schedule to amend your previous tax returns and claim any missed deductions.
Why choose us
We can assist you to prepare your investment property depreciation schedule through our ATO-approved depreciation schedule partners, who are registered tax agents and members of the Australian Institute of Quantity Surveyors (AIQS).
This depreciation schedule will provide a detailed forty-year report that includes all depreciable plant, equipment, and capital building works deductions.
The depreciation schedule includes both the prime cost and diminishing value depreciation methods to help you decide which method is most beneficial for you.
Capital works deductions
Capital works deductions (Division 43) are income tax deductions an investor can claim for the wear and tear that occurs to a building’s structure and items considered to be permanently fixed to the property.
This includes any structural improvements that may have been made during a renovation within relevant dates. They can be claimed even if completed by a previous owner.
Plant and equipments deductions
Plant and equipment (Division 40) assets are items which are easily removable or mechanical in nature from a residential investment property or commercial building. Property owners can claim depreciation for the wear and tear of these assets.
What is deductible under plant and equipment?
Air-conditioning units, Blinds and curtains, Hot water systems, heaters, solar panels, Security systems and CCTV equipment, Light fittings, Gym equipment, Swimming pool filtration and cleaning Hose reels systems, Beds, Carpet, Cooktops, Dishwasher, Exhaust fans, Garden Sheds, Microwave ovens, Ovens, Range Hoods, Rain Water Tanks, Shower Curtains, Smoke detectors, Washing machines, Window blinds, Window curtains, Hose reels and Television sets